| Healthcare freeloaders are costing Alberta taxpayers tens of millions of dollars every year by not paying their monthly premiums. In the last financial year alone, unpaid Alberta Health and Wellness insurance premiums totalled more than $163 million and nearly $70 million was simply written off by the province, Fast Forward can exclusively reveal.
Out of 1.7 million accounts, there are currently 144,000 in arrears and $79 million in unpaid premiums, which contribute to overall healthcare funding in the province.
The shocking figures were brought to light after a collector from Metropolitan Credit Adjusters revealed he and his co-workers make hundreds of calls every day to people who have not paid their premiums. Collectors are currently dealing with 45,572 accounts, a spokesman for the province confirmed. These figures have further infuriated taxpayers who criticized the provincial budget last month for failing to reduce premiums for families.
Tamara Etmannski, a 24-year-old U of C geology student, says, "My parents, who certainly are not rich, have been paying our family’s premiums for decades. It isn’t fair that we not only have to pay our premiums, but our taxes have to compensate for people who don’t. Maybe if other people were made to pay, we wouldn’t have to give so much."
More than $16 million has been spent over the last three years paying collectors to retrieve the cash, though only $68 million out of the $475 million referred for payment was recovered, Alberta Health spokesman Howard May says. Thousands more is spent every year taking debtors to court, though less than 75 new cases are filed each month.
However, no one is ever turned away from health care, no matter how much they owe.
"The people who are listed as bad debtors get a bad credit rating, which can affect them when they try to get things like a loan or a mortgage," says May. "No one is turned away from health care in Alberta. We do take this very seriously. The amount we get back through collectors is much larger than the amount we pay out." He says if the province were to take more people to court to get the cash, it would only end up costing more in the long run. "If the $79 million that is currently owed was paid, that would be $79 million for the province to spend," he says.
One debtor, an electrician who owes the province $700 in unpaid premiums, says part of his reluctance to pay is out of principle. "In order to have health care I have to pay the premiums, but I can’t remember the last time I even went to a doctor," says the worker who asked not to be named. "I feel like I am paying for other people to be looked after. If I wasn’t worried about needing medical help one day down the road, I would not subscribe to Alberta Health at all. After all, I pay enough taxes as it is. It feels like I am supposed to pay twice for something I don’t even use."
People who have not paid their premiums are first sent formal warnings. They are given nine months to pay before being referred to a collection agency. If they still have not paid after six months, their file is returned to Alberta Health for legal action. Health and Wellness minister Dave Hancock was "too busy" to comment. |
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