Auditor General Finds Province Pays Millions to Finance Employee Health and Dental Benefit Plan Deficits
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Auditor General Paul Martin recently tabled a report at the legislative assembly, which highlighted issues with the health and dental benefit plan that serves over 30,000 eligible employees in the government and various entities.
The report found, in 2017, the provincial government made a lump-sum payment of $8.8 million to finance the deficit at June 2016. The health component of the plan has been in a deficit position since 2016, with a cumulative deficit total of $6.9 million recorded in June 2021.
The report noted that the claims administrator has been repeatedly awarded the contract since the 1960s. In addition, Finance and Treasury Board has not evaluated the structure of the provider arrangement in over 30 years.
The report noted that the Department of Finance and Treasury Board has not developed a process to manage risks, and highlighted the issue of weak contract management, as third-party performance is seldom evaluated against targets.