For 11 years the Ontario government has known that the taxpayers are paying too much for the healthcare of MVA victims post accident. The Auditor General has told them so in more than one report. The Minister of Finance recently put out the HSPRN report that acknowledges that the actual cost to OHIP was $383 million in 2013/14. This is a shortfall of $241 million in just one year. The loss to the taxpayer, who is paying while insurers aren’t, is well over $1 billion in just the last 5 years alone.
Ontario auto insurers continue to pay just $142 million per year.
So we ask – why is the Ontario government gifting auto insurers?
With a total of 69,724 incidents in 2013/14 this amounts to a total present value (net actuarial liability) of $383,099,805 for MVAs that occurred in 2013/14. HSPRN Report, “Cost of Public Health Services for Ontario Residents Injured as a Result of a Motor Vehicle Accident”
2011 Annual Report of the Office of the Auditor General of Ontario http://www.auditor.on.ca/en/content/annualreports/arreports/en11/301en11.pdf– see page 65 In 2005, our audit of the recovery of health costs resulting from accidents led us to conclude that the Ministries of Health and Finance did not have satisfactory policies and procedures in place to monitor the adequacy of the initial $80-million annual assessment. Subsequently, the government increased the annual assessment in September 2006 to about $142 million.