In 2023, the government made the unilateral decision to transition the administration of the Public Service Health Care Plan (PSHCP) from Sun Life to Canada Life. This transition was so poorly executed that thousands of members saw their claims denied. Many ended up accumulating thousands of dollars in credit card debt because Canada Life would delay or wrongfully deny the reimbursement of costly medication. 

In June 2024, the Standing Committee on Government Operations and Estimates (OGGO) presented its report on the transition, presenting many recommendations to solve the issues, including compensating members for the financial losses suffered because of the unjustified delays or denials by Canada Life. 

In response to the OGGO report the government is now trying to frame this as expected road bumps or growing pains, refusing to take any accountability for the harm they caused. They chose to change the plan and the provider on the same day to save money and gave Canada Life a penalty-free grace period. Many people and their families have suffered because of the government’s conscious mistakes, yet they refuse to own up to it.  

Members deserve compensation for fiasco 

The government is refusing to make members whole as they claim that reimbursements are administered by the PSHCP. However, this completely ignores the financial burden that members have had to take on beyond the claims themselves, as well as the suffering caused by lack of access to medication and treatment. Choosing between crushing debt and life-saving medication is a decision no one should have to face, yet it has been a harsh reality for many. 

For a government that says it is committed to remaining accountable to ensure a healthy, safe, inclusive and accessible workplace, this response shows a complete lack of accountability, a disregard for employee health, and reflects a culture of inaccessibility and exclusion.  

Next steps 

The government continues to fight their own workers, forcing this through the grievance process instead of simply doing the right thing. PSAC will continue to push the government to apply the recommendations from the OGGO report and will pursue its policy grievance on the matter.