Avoid this private health insurance pitfall.

If you are thinking of buying personal health insurance coverage it is important to understand the limitations of your coverage.

I recently met a couple who contacted me to purchase a private health insurance plan. They had recently moved from Alberta to Ontario only to discover that their Alberta Blue Cross plan was not going to cover them once they had left the province.  This was very unpleasant news for our new residents so to be certain I called Blue Cross in Alberta myself and learned that the Blue Cross Alberta is a separate company from Blue Cross Ontario and that the only option for them to obtain health protection was to apply for coverage with Blue Cross Ontario or another provider in Ontario.

The problem in this case is that while living Alberta and being covered by Blue Cross the client was diagnosed with high cholesterol and was prescribed medication.  Pre-existing medical conditions would  not covered by the new plan which require medical information; there are plans that do not ask any medical questions but the coverage limits are much lower than the plans that ask one’s medical history.

In the interest of avoiding this problem for others in future I made inquires with other insurance carriers and asked how they covered clients who changed provinces and learned that they would transfer cover to another province but that the premium would likely change to reflect that provinces universal health plan.

If you are buying a personal health care plan and think there is a chance that you might relocate to another province in Canada remember to choose an insurance company that will go with you. Please feel free to contact us to learn more.

Tip – Health insurance premiums for business owners are generally tax-deductible, check with your tax advisor to see if this applies to you and your small business.