Canada Life slapped with government sanctions

Canada Life slapped with government sanctions | Insurance Business Canada

Insurance News

Canada Life slapped with government sanctions

Move follows complaints spanning long waits and communication issues

Insurance News

By
Terry Gangcuangco

Canada Life, which took over from Sun Life last year to be in charge of the public service health insurance plan, has been slapped with sanctions over issues with its deliverables.

A report by CBC News cited Public Services and Procurement Canada (PSPC) spokesperson Michèle LaRose as saying that PSPC is moving to “address startup delays faced by Canada Life and has begun to apply financial consequence mechanisms” under the $514 million contract.

PSPC wouldn’t elaborate on the sanctions at this point.

Complaints against Canada Life and subcontractor MSH International included long waits and an alleged lack of explanation regarding claim denial or underpayment.

Canada Life asserted it already resolved its transition issues.

A company spokesperson was quoted by CBC News as saying in an emailed statement: “Canada Life is delivering benefits under this plan in Canada within expected service levels, including answering calls within 30 seconds and processing electronic claims within one day on average.”

LaRose added: “As the contractor for this project, Canada Life is responsible for ensuring that all deliverables set out in the contract are met, including work that is subcontracted out to other companies.”

Earlier this year, a cyber incident on MSH International’s systems rendered the company unable to process claims while members couldn’t log into the company’s member portal.

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