Government hits Canada Life with financial sanctions [Video]

The federal government has begun imposing financial sanctions on Canada Life after months of outcry from public servants, retirees and their families who were left fighting for medical claims to be covered.

Public Services and Procurement Canada (PSPC) said it “is taking steps to address startup delays faced by Canada Life and has begun to apply financial consequence mechanisms under the contract,” according to a statement from spokesperson Michèle LaRose.

She said PSPC is not yet in a position to share details about the nature of the sanctions.

On July 1, 2023, the federal government transferred responsibility for the public service health insurance plan from Sun Life to Canada Life.

The company had a six-month transitional period before the government could begin assessing the level of service, according to tendering documents for the $514-million contract. 

For months, the federal government has repeatedly stated that it’s prioritizing collaboration with Canada Life …