Fedreal Superannuate Surcharge

Summer 2003 CSANews Issue 47  |  Posted date : Apr 20, 2007.Back to list

Gentlemen:

Re: $40.00 Surcharge
With regard to your CSA News article regarding the $40.00 surcharge that Medipac adds to their out-of-province health insurance policies.

It is Not Fair that Federal Government employees must pay a $40.00 penalty because the Federal Government has a MEDOC Plan of out-of-province insurance available to them for the first 40 days of any trip.

I have not heard of any other insurance company charging this $40.00 surcharge to their plans for this option.

Sincerely,
Harry E. Friend
Kingston ON

Response:
Our $40 Top-Up Fee was a topic of discussion in several "It's Not Fair" letters. The reasoning behind this is fairly simple in that the longer a person is away from their doctors, the more chance there is of a claim occurring. Since our move to "Buy What You Need Top-Ups," we added a small extra fee to offset this additional risk. The premium savings, in doing this, was quite substantial under most policies. Even with this fee, the Medipac Program usually provides much better rates than topping up your basic employer plan. Many other companies do not have a fee because they build it into the premium itself. On a 180 day trip, they will charge the 180 day rate less the 40 day rate which gets them additional premium for the longer 180 day duration used. Medipac charges the lower 140 day rate and adds $40.