Yukon Government sign outside the Jim Smith Building in downtown Whitehorse. Photo Courtesy of Macklen Linke/CKRW.
Whitehorse, YT – Premiums for the Yukon Government’s extended health care plan, which covers all current government employees and retirees, are set to increase by 52.8 percent on April 1st which to some is a necessary evil in the era of post-COVID-19 and inflation but to others a sign of disregard for ex-Government workers.
The Yukon Government, which works with the Joint Management Committee (JMC) which oversees the benefit, attributes the premium increase to rising claims and expenses driven largely by benefit usage and inflation.
In a written response from the territorial government, they mentioned that the premium changes were communicated in emails or mailed letters to plan members including both active employees and retirees. Although current employees are locked into the benefit they highlight that retirees have the option to opt out if necessary.
Justin Lemphers, President of the Yukon Employees Union (YEU), says that active employees have the power to push back through negotiating wage increases however retirees lack that key ability.
“Retirees don’t get the benefits of negotiated increases. They’re simply subject to the decisions and the legislation, they don’t have the benefit of a collective agreement,” said Lemphers. “They’re also on fixed incomes.”
The YEU previously reached out to the Public Service Alliance of Canada (PSAC) to gather information on comparable premium increases across the country. The PSAC seemed to indicate to Lemphers that the 52.8 percent increase is currently the largest nationwide.
Lemphers recognizes that it’s no surprise to see an increase in these premiums, due to inflation and the effects of the COVID-19 pandemic, however, he questions whether the Government considered any alternatives before deciding on this increase.
“The scope and scale is really what will define the uniqueness of the situation. So if we are indeed the outlier, with that massive number of 52.8 percent,” said Lemphers. “If there’s a greater increase, we’d love for them to present that information. Otherwise, have they done their homework? Have they actually looked to see if they can get better value for money?”
Del Young, a retiree who worked as a gas inspector for the Yukon Government for over 20 years, says he did expect to see an increase in the premium rate but was surprised when he checked his emails a couple of weeks ago.
“I was shocked at that at the increase,” said Young. “I anticipated perhaps a seven or maybe a 10 percent increase or something in accordance with the cost of living but over a 50% increase? I was shocked.”
Young says that he previously paid around $80 a month but this increase would boost that to almost $130 per month. Young expects to be paying around $600 per year if he doesn’t opt out of the plan which he is hesitant to do because of a three-month gap that would exist in his coverage that would occur in a transition.
There was an attempt to reach Finance Minister Sandy Silver over the phone that Young says was not returned.
“I really thought that the government would have my back,” said Young. “I thought they cared about their seniors, but doing his reeks of indifference on the part of the government.”
