If you've found the ideal candidate for your role in Canada, congratulations! Now, the hard part - compliantly hiring and onboarding your new Canadian team member.
One key area of the hiring process is healthcare coverage. Many Canadians receive provincial healthcare coverage, however, this can change if they decide to work abroad for a company or business that is not Canadian.
Our team at Borderless AI will share everything you need to know about healthcare coverage when hiring a Canadian employee and the importance of obtaining private insurance when that employee travels or relocates outside of Canada.
From how provincial healthcare works to purchasing private health insurance plans, let's talk about healthcare in Canada.
How Provincial Healthcare Works in Canada
Especially if you're based in the U.S., you might have heard the refrain 'Healthcare is free in Canada'. While this is generally true, territorial and provincial healthcare plans can fluctuate and differ based on the location of residence.
How provincial and territorial health care coverage works in Canada
The Canadian Constitution determines Canada’s publicly-funded health care system. In this system, the roles and responsibilities are divided between federal, provincial, and territorial governments.
While both provincial and territorial governments do retain most of the responsibility for delivering health and social services, the federal government is responsible for the delivery of services for certain groups of people, such as first nations and veterans.
To summarize, Canadian citizens receive publicly-funded health care that is administered on a provincial or territorial basis, within comprehensive guidelines that are established by the federal government.
Healthcare Coverage for Canadians Working Abroad by Province
As a general rule of thumb, healthcare coverage for Canadians will expire six to eight months after moving abroad. That being said, there are some exceptions for students and other special groups. This is because your coverage is contingent on your residency within your province.
Depending on your province, timeline, and overall situation, you may need supplemental health care insurance to help ensure that you are fully covered.
To help you gain a better understanding of healthcare coverage for Canadian employees working abroad for your company or business, here are resources that can provide you with a comprehensive breakdown of provincial and territorial responsibilities.
- Alberta
- British Columbia
- Manitoba
- New Brunswick
- Newfoundland and Labrador
- Nova Scotia
- Ontario
- Prince Edward Island
- Quebec
- Saskatchewan
- Northwest Territories
- Nunavut
- Yukon
It is also worth noting that there may be different rules for those who are planning to work outside of their province or territory of residence, but still within Canada.
For more information or helpful resources to help you navigate this topic, visit the Government of Canada website.
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Should Canadians Working Abroad Obtain a Private Health Insurance Plan?
As the saying goes, it’s better to be safe than sorry. This phrase is especially applicable to Canadians who are planning to work abroad and are considering obtaining a medical insurance plan.
Canadians who are working abroad should always obtain additional medical insurance regardless of their health status.
Your healthcare coverage in Canada while working abroad is determined by your province or territory of residence.
The terms of coverage vary from one province or territory to another, which is why it’s so important to not only gather this information prior to leaving the country, but also obtain an additional medical insurance plan.
In most cases, the province or territory of residence will cover the employee for emergency hospital care services —but only if they are eligible. To help ensure that the person is fully covered, an additional medical insurance plan is the best solution. When hiring an employee in Canada, it’s imperative to consider this as an extra cost in the process.
If the employer does not offer a medical insurance plan, the employee may have to seek an alternative care plan.
In any case, it is highly recommended that the employee set aside a fund for urgent health care needs while working abroad.
Helpful Information for Canadians Living Abroad
Many Canadians travel and relocate internationally to work.
Obtaining a Work Visa or Permit
In most cases they must first be granted special permission, such as a work visa or permit, in order to legally work in a foreign country. This work visa, permit or special permission must be obtained prior to working abroad.
For more information about the requirements of working abroad, we suggest contacting the country’s embassy or consulate in Canada.
Taxation for Canadians Living, Working or Traveling Abroad
Did you know that Canadians who work abroad may still have to pay federal, provincial or territorial taxes? If a Canadian is planning to work abroad for a prolonged amount of time, the Canadian Revenue Agency (CRA) should be informed immediately.
Especially before the person asks for a determination of their residency status.
Their residency status is contingent on whether or not they plan to leave Canada permanently or temporarily for work.
Here is helpful information for those who plan to leave Canada:
For more information about taxation for Canadians living, working, and traveling abroad, the Government of Canada website has many helpful and informative resources to help.
Frequently Asked Questions
Who pays for healthcare coverage in Canada?
In Canada, basic healthcare is free for citizens.
This includes care such as hospital visits and medical treatment, but does not include prescription drugs and medications, physiotherapy, chiropractic care, mental health care, and other forms of non-essential treatment.
But the question remains, who actually pays for health care in Canada? Here is a comprehensive breakdown:
- Over 70% of healthcare spending is funded publicly through general tax revenues.
- The provinces and territories in Canada generate 78% of the cost, with the federal government covering the remainder through the Canada Health Transfer (CHT).
- Many Canadians are covered through health insurance benefits provided by their employer, which generally helps to fill the gaps. These private insurance plans generally help to reduce the cost of prescription medications, paramedical care, ambulance services, dental services, vision care, and more.
For a real deep dive on this topic, take a look at this article about health care funding in Canada from the Canadian Medical Association.
Who is eligible for the territorial and provincial health care plan in Canada?
The national health insurance program within Canada is designed to help ensure that all those insured have access to health services. This includes all medically necessary hospital and physician services, on a prepaid basis that leaves them in a position where they are fully covered.
Not only does this allow Canadians to access the care they need, when they need it, but also without the added stress and concern of paying for medical expenses.
An insured person is defined by the Canada Health Act as a person who resides in a province or territory, and:
"a person lawfully entitled to be or to remain in Canada who makes his home and is ordinarily present in the province, but does not include a tourist, a transient or a visitor to the province."
To summarize, the basic requirement for either provincial or territorial public health insurance coverage in Canada is residence within a province or territory.
Furthermore, most provinces and territories will require that an insured person be physically present 183 days annually and must provide evidence that they intend to return to said province or territory.
Which health care services aren’t covered by the provinces and territories?
While many provinces and territories cover a wide range of healthcare treatments and services, some areas are not covered.
This is why many Canadians either reserve funds to cover said costs, or are provided with a benefits plan by their employer.
Some healthcare services that aren’t covered by the provinces and territories include:
- Preferred hospital accommodation, such as a private room or private nursing care, unless indicated as medically necessary by a physician
- Certain prescription drugs and medications
- Paramedical care and rehabilitation services, such as a chiropractor, naturopath or physiotherapy
- Vision care
- Dental care
Coverage may vary from one province or territory to the next. For more coverage information, Canadian citizens are urged to contact their regional health authorities or local public health services.
How do I resume my health care coverage after returning to Canada?
Once a person returns to Canada after working abroad for a certain amount of time, they will generally experience a three-month waiting period before their coverage is reinstated.
For more information, the Ministry of Health within the province or territory of residence can help.
Final Considerations for a Canadian Citizen Working Abroad
To summarize, a Canadian citizen working abroad should plan to obtain additional health coverage. This may be through their employer or a private insurance plan.
While some care may be covered by their territorial or provincial healthcare plan, Canadians should expect that there will be a gap in coverage for services that are otherwise free while in Canada.
If a Canadian citizen does not have access to a private insurance plan, either through their employer or their means, having an emergency fund set aside in case of an emergency is recommended.
In any case, a proactive approach can result in a successful and enjoyable foreign work experience. Not only can working abroad present an opportunity to elevate one's career, but also to immerse oneself in other cultures and explore different countries.
Contact Borderless AI for More Information
For more information about provincial healthcare coverage and private insurance for Canadians working abroad, contact our team of international employment experts at Borderless AI today!
Whether you’re looking to hire a Canadian employee or you’re a Canadian who is considering working abroad, we are always here to help.
Did you find the information in this article about health care in Canada helpful? Visit the Borderless blog for more informative resources and helpful information.
Other blog posts you may find helpful can include:
- Navigating Canadian Work Permits and Visa Options: Americans
- How to Enjoy: Canada’s Digital Nomad Visa
- Step-By-Step Guide for: Americans Moving to Canada
- Pros & Cons of Hiring Internally V.S. Externally
Our team of worldwide employment experts can answer just about any question you might have, especially when it comes to healthcare coverage in Canada, federal legislation, and Canadian citizens working abroad.
Disclaimer
Borderless AI does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
