On July 1, 2023, the Canadian government switched insurance providers from Sun Life to Canada Life, aiming for a seamless transition. However, for numerous federal public servants, retirees, and their families, the switch brought unexpected challenges.
Shortly after the transition, CBC began receiving numerous calls and emails from affected Canadians. They reported that their benefits had been abruptly terminated, leaving them responsible for expensive medical treatments and medications. Attempts to contact Canada Life for resolution often resulted in long wait times or no access to customer service agents, leaving families across the country struggling to secure their benefits.
CBC Ottawa shared these stories, and in several instances, Canada Life took swift action to resolve the issues. Months later, the company issued an apology before a parliamentary committee for the difficulties its clients had faced. Here are some of the stories shared:
1. The Hartlings: Dorène and Stephen Hartling had been enrolled in the Canada Life system before the switch, but they spent days attempting to contact the company about their health and dental benefits. Dorène made close to two dozen calls in one week without reaching an agent.
2. Louise Sullivan and Mike Fairhead: Following the transition, Louise Sullivan’s husband, Mike Fairhead, saw his physiotherapy benefits significantly reduced, impacting his progress after a stroke eight years ago.
3. The McLaughlans: The McLaughlan family faced unexpected challenges in securing coverage for their two-year-old daughter, Briar, who suffered brain damage from a near-drowning incident in July 2022.
4. Gloria Timothy: Timothy, who had been caring for her two teenage granddaughters, faced difficulties accessing their medical benefits due to the transition, leaving her to cover their expenses out of pocket.
5. Elizabeth Stagg: Stagg experienced a significant reduction in coverage for the formula she needed to live, resulting in financial strain and difficulties affording essentials.
6. Janice Namiesniowski: Janice Namiesniowski’s asthma improved significantly with the help of a new drug called Xolair. However, their coverage ended after the switch to Canada Life, causing her health to deteriorate.
In October, the federal government announced that a parliamentary committee would investigate the impact of the transition to Canada Life on public servants’ coverage. Numerous individuals affected by the switch shared their stories, highlighting the need for resolution and improved procedures.
The unions representing public servants argued that the government should have taken more steps to ensure a smoother transition, comparing the situation to the problematic adoption of the Phoenix pay system.
Representatives from Canada Life apologized during a House of Commons committee session, acknowledging the challenges faced by some clients and expressing regret for the service issues they encountered.