Health Care Levies

What does auto insurance have to do with health care?

Most Canadians have never been in a serious car crash, and may not know what auto insurance has to do with health care. In fact, Canada’s non-government home, car and business insurers pay more than $2 billion per year into the country’s health care system, most of it related to auto insurance.

What is a “levy?”

If you are seriously injured in a car crash, most of the treatment you receive is probably covered by auto insurance, but because Canadians have universal health care, any emergency care or visits to your doctor will initially be paid for by your provincial health care plan. You will likely never see the bill, but your auto insurer will – in a manner of speaking. Every year, insurers reimburse provincial health plans for treatment given to crash victims. This is called a “health levy” or “aggregate assessment,” and is an important source of funds for provincial health care systems in Alberta, Ontario, New Brunswick, Nova Scotia, PEI and Newfoundland & Labrador.

What about treatment that is not covered by provincial plans?

In addition to funding health care through levies, auto insurers pay for a number of health services directly. Depending on the type of injury you have suffered in a crash and where you live, your Accident Benefits (AB) coverage may cover visits to a chiropractor, physical therapist, psychologist, speech or occupational therapist (usually for brain injuries), and/or massage therapist, and a number of other health care professionals. In addition, AB often pays for crutches, wheelchairs and other assistive devices, and may even cover improvements to your home or car to help you deal with a permanent disability.