MRG Principles and Policy Statements

MRG Policy Statement on the Definition of Insured Services.

Up to now, we have not had a clear definition of the insured health services that provincial governments are mandated to provide to the public. Legislation stipulates that these services be comprehensive, but comprehensiveness is subject to wide interpretation. The result is there is appreciable heterogeneity in the services covered by the various provincial health plans.

Recently, observers of the Canadian health care system have suggested that it is time to more precisely define insured services. Sources of pressure have included members of the legal community, and voices warning us that, in the face of budget restraints, we can't maintain the current level of public health care. The focus of the definition of insured services is on "medical necessity" -- the notion being that only medically necessary services should be covered.

Intuitively, precise definition of insured services make some sense. Public values define what is appropriate coverage, and we establish uniformity across provinces. We reduce the burden on public spending by eliminating inappropriate services from the domain of the insured. Potentially, this allows us to continue with universal coverage for the services that are really important. There are, however, a number of major problems with this approach.

First, it equates comprehensive coverage with medical necessity. The two are very different. Many health services, including for instance dental care, are necessary for maintenance of health, but well not be considered "medically necessary". Limiting exposure to environmental pollutants is necessary for maintenance of health, but is even farther from some peoples' notion of medical necessity.

Second, even if one accepts the limited scope of medical necessity, the process of considering specific services makes evident the difficulties of defining the correct range of insured benefits. While there are many services about which one can raise questions on the basis of public versus individual responsibility (tattoo removal, for instance), one can almost invariably think of instances in which one would want these services covered. While one can raise questions about the effectiveness of services (intensive psychotherapy, for instance) considering both the caring and curing functions of medicine gives one pause. The MRG has found that discussions of the exact range of appropriate insured services quickly show that satisfactory resolution is impossible.

This makes us question the need for a precise definition of insured services. The Canadian health care system worked well for 25 years without such a definition. Provincial governments have maintained acceptable coverage, and there are few, if any, gross violations of the principle of comprehensiveness. Should there be such violations, the federal government is in a position to withhold funds from the offending provinces. So why the current debate?

The debate is a function of the budgetary pressures on governments. The cost-cutters see restricting the range of insured services as a way of trimming the system. As it turns out, when one looks at what we will save by de-insuring the controversial procedures, the amount is trivial. To really reduce public expenditure would require removing a wide range of services. We believe the push for a definition of insured services is another feature of the systematic attempts to undercut our universal public health care system.

With respect to definition of insured services, the system isn't broken, and doesn't need to be fixed. The solution to the problems of cost pressures on the system include improving efficiency in health care, and revising our priorities on the mix of public and private resource allocation within our society. Canada's current rationing strategy, limiting resource availability (hospital beds, high technology equipment, the number of health care providers) and letting health care providers work out the most efficient way of using the resources available, continues to be the most appropriate.

Our answer to the precise definition of necessary services is that we don't need such a definition. If pressed further, we believe that we should not consider only what is medically necessary, but rather the notion of comprehensive care required to maintain and enhance health. Under this framework, we would use the broadest definition of insurable services, including areas on the border of health care that nevertheless have an important impact on health. The health care community should, for instance, be involved in ensuring optimal environmental standards. Our bottom line is that the debate concerning what is necessary medical care ultimately distracts us from dealing with the real issues in health care delivery today.

Top of Page

Next: Health Services Allocation


Principles and Policies