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Government Health Insurance Plan (GHIP)

A Government Health Insurance Plan (GHIP) is the publicly funded healthcare program administered by each Canadian province and territory. It provides residents with access to medically necessary hospital and physician services at no direct cost, funded through provincial taxes and federal health transfers. GHIP ensures that all eligible residents receive essential medical care regardless of income or health status, forming the foundation of Canada’s healthcare system.

How It Works

Each of Canada's ten provinces and three territories administers its own health insurance plan, following the national principles set out in the Canada Health Act of 1984. That act establishes five fundamental principles every provincial and territorial plan must adhere to: universality, comprehensiveness, accessibility, portability, and public administration. Funding comes from provincial taxes and federal health transfers, with the federal government providing additional support through the Canada Health Transfer. Because each province runs its own plan under a different name, such as the Alberta Health Care Insurance Plan (AHCIP), the Ontario Health Insurance Plan (OHIP), and the Régie de l'assurance maladie du Québec (RAMQ), eligibility depends on provincial residency requirements, and new residents may face a waiting period of up to three months before coverage begins.

Example:

Say you visit your family doctor in Canada for a medical consultation. The appointment is billed directly to your provincial GHIP, such as OHIP in Ontario or AHCIP in Alberta. However, if the doctor prescribes medication afterward, that cost is generally not covered by GHIP unless you have private drug insurance or qualify for a government assistance program. The same gap applies to routine dental cleanings and eye exams, which is why many Canadians add private extended health and dental coverage.

What to Watch For:

GHIP does not typically include services such as prescription drugs outside hospitals, dental care, vision care, or paramedical treatments, which is why many Canadians purchase extended health insurance for additional protection. Keep in mind that eligibility hinges on provincial residency, so new residents may wait up to three months before coverage begins. In Alberta, for example, eligibility for the provincial plan requires being physically present in the province for at least 183 days in a 12-month period, with specific exceptions for students, armed forces members, and others.

Related Terms

Guaranteed Acceptance

Guaranteed acceptance refers to an insurance plan that does not require medical questions, health history, or evidence of insurability for approval. Coverage is automatically granted to anyone who applies and meets basic eligibility criteria such as age or residency. This type of plan is designed for individuals who may not qualify for medically underwritten insurance due to pre-existing conditions, chronic illnesses, or other health concerns.

Coverage / Benefit

Coverage, sometimes referred to as a benefit, is the range of health or dental services, supplies, or treatments that your insurance plan agrees to pay for under its terms and conditions. Each benefit represents a category of care, such as prescription drugs, dental services, vision care, or paramedical treatments.

Health Insurance

Health insurance is a type of coverage that helps pay for medical and healthcare expenses not fully covered by Canada’s public health system. It protects individuals and families from the high cost of prescription drugs, medical services, and treatments that fall outside provincial or territorial government health plans. Health insurance can be obtained through an employer’s group benefits plan or purchased individually from a private insurer.

Healthcare Spending Account (HCSA)

A Healthcare Spending Account (HCSA) is a flexible, employer-funded benefit that reimburses employees for a wide range of eligible healthcare expenses not fully covered by their group insurance plan or a government health plan. It allows employees to use allocated funds toward medical, dental, and vision expenses based on their personal needs. The Canada Revenue Agency (CRA) regulates which expenses qualify under the Income Tax Act, and reimbursements from an HCSA are received tax-free.

Extended Health Care Insurance

Extended health care insurance (EHC) is supplemental coverage that helps pay for medical expenses not covered by your provincial or territorial health plan. It protects you from out-of-pocket costs associated with services such as prescription drugs, vision care, medical equipment, hospital upgrades, emergency travel medical care, and paramedical services like physiotherapy or chiropractic treatments.

Relevant Plans

Plans that relate to Government Health Insurance Plan (GHIP)

Alberta Blue Cross - Blue Assured - Basic

Alberta Blue Cross - Blue Assured - Basic

Can apply at anytime, at any age.

Alberta Blue Cross - Blue Assured - Enhanced

Alberta Blue Cross - Blue Assured - Enhanced

Can apply at anytime, at any age.

Alberta Blue Cross - Blue Assured - Enhanced+

Alberta Blue Cross - Blue Assured - Enhanced+

Can apply at anytime, at any age.

Alberta Blue Cross - Blue Assured - Premium

Alberta Blue Cross - Blue Assured - Premium

Can apply at anytime, at any age.

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