Blog

Stay on top of insurance and benefits news

The Battle Over Virtual Care: And Why It Will Impact The Future Of Healthcare In Canada

The debate over public versus private healthcare is intensifying

As virtual care has become a critical resource for many, particularly in the wake of the pandemic, the debate now centers on integrating virtual care into the public system without disadvantaging those who rely on employer-funded benefits in order to meet the demand for accessible, timely care. 

Business groups, insurers, and virtual care providers urge the government to keep these employer-paid virtual care services intact. They fear that a ban on out-of-pocket fees for primary care could inadvertently eliminate access to these benefits, and removing this option could worsen the ongoing healthcare accessibility crisis, particularly given the significant number of Canadians who struggle to access timely care.

The debate is not one to take lightly, as the outcome could significantly impact the future of healthcare delivery in Canada. 

The Canadian Medical Association Sparked Controversy By Proposing To Ban Workplace Virtual Care Coverage.

The Canadian Medical Association (CMA) suggests that virtual care should be solely a public insurance benefit, eliminating private insurance options for services already covered by provincial plans. However, many argue that this would limit access to care for millions of Canadians, especially when the public health system is already overwhelmed.

Many prominent Canadian doctors are raising their voices against the surge of for-profit health care. They contend that companies that charge patients for primary care services potentially infringe upon the Canada Health Act’s principles and conflict with its core values.

These practices deepen inequalities, worsen wait times, and increase costs within the public system. The call is for expanding public health capacity and not-for-profit alternatives. 

Virtual care – often funded by employers – has been crucial in reducing wait times and providing timely access to healthcare. So wouldn’t the Canadian Medical Association’s stance worsen the healthcare crisis, restricting access when many Canadians cannot secure timely medical appointments while unnecessarily spending public funds? 

Federal Government Urged To Protect Employer-Paid Virtual Care Amid Canada Health Act Review.

Many urge the Canadian federal government to protect employer-paid virtual care offered through workplace benefit plans and to better interpret the Canada Health Act regarding whether non-doctor primary care providers, like nurse practitioners, can charge for medically necessary services.

If the government fails to clarify that employer-paid virtual care is permitted, millions of Canadians could lose access to essential health services, worsening the already significant healthcare accessibility crisis. The Act – which mandates provincial health plans cover necessary care without out-of-pocket costs – faces pressure from the rise of virtual care services that fill gaps in the strained public system. This interpretation could significantly impact whether these employer-supported services continue to operate, potentially disrupting access to timely care for many Canadians. 

Telehealth companies peaked during COVID-19 – now that number is dwindling.  

Telehealth companies saw a significant surge in demand and popularity during the COVID-19 pandemic, with over 40 such companies operating in Canada at the peak of the crisis. However, as the situation has stabilized and healthcare services are gradually resuming some level of normalcy, the number of telehealth companies in the country has dwindled to less than 10.

This decline may be attributed to a reduced need for virtual healthcare services as in-person consultations become more accessible, consumer preferences shift, regulatory changes change, and perhaps even consolidation within the industry. This trend highlights the evolving nature of the healthcare sector and how quickly the landscape can change in response to external factors.

Rural Communities Are Caught In The Middle 

As Ontario’s small communities grapple with doctor and nurse shortages, some towns have adopted cash incentives to attract medical professionals.

The provincial government is facing increasing demands to enhance the sustainability of family medicine by providing higher compensation to doctors. Rural communities in Ontario are implementing various initiatives and strategies to attract doctors and healthcare professionals to their areas.

  • A regional health centre in Dryden, Ontario, includes $37,500 for help with relocation expenses. 
  • Blanche River Health in Kirkland Lake offers $2,000 to anyone, anywhere in the world, who successfully refers a doctor or nurse to work at the hospital.
  • A hospital in Huntsville, Ontario, offers a $80,000 signing bonus to any family physician who agrees to work in the town for at least five years.

While these strategies show early success, health experts warn they could create inequities and a competitive environment among municipalities. Critics argue for more sustainable solutions, such as student debt forgiveness and team-based care models.

Virtual Health Platforms Aren’t Going Away, But Significant Debate Exists About Their Future. 

The discussion centers on whether these services, often funded through workplace benefits, should continue under the Canada Health Act’s review. Many advocates for preserving these services worry that changes to the law could limit access and exacerbate existing healthcare accessibility issues. This reflects the broader challenge of integrating virtual care into the public healthcare system while maintaining its availability for those who depend on employer-paid options.

Regardless of where this heads, the result has the potential to greatly influence the future of healthcare delivery in Canada.