Mental Health Benefits for Veterans

Summary#

This notice proposes changes called the Regulations Amending the Veterans Health Care Regulations to let Veterans Affairs Canada offer a temporary Mental Health Benefits program. The idea is to give eligible Veterans earlier coverage for counselling and certain drugs while they wait for a decision on a disability claim. The proposal was published on January 1, 2022 and aimed to start on April 1, 2022. The government estimates a 10‑year net cost of −$34.2 million (present value).

What it does#

• Adds a new Mental Health Benefits program to the Veterans Health Care Regulations so Veterans can get coverage sooner for certain mental health conditions.
• Covers people who are former members of the Canadian Forces living in Canada who apply for disability benefits for:
  • anxiety disorders,
  • depressive disorders,
  • trauma‑ or stressor‑related disorders.
• Coverage starts automatically when the department receives the disability application and continues until a first decision.
  • If the claim is granted, the person moves to the regular Treatment Benefits program.
  • If the claim is denied, the Mental Health Benefits continue for two years after entry into the program.
• Pays for services such as psychology, counselling, social work and prescribed pharmaceuticals. It does not cover:
  • physician care,
  • in‑patient hospital care,
  • health‑related travel costs,
  • cannabis for medical purposes.
• Coverage is only for services in Canada and only when those services are not already paid for by provincial plans or other sources.
• The program would be run using a third‑party administrator, Medavie Blue Cross, which would issue benefit cards and handle payments.
• The changes also include a number of minor technical fixes to other parts of the Regulations.

Who's affected#

• Primary: former members of the Canadian Forces who live in Canada and who apply to Veterans Affairs Canada for disability benefits for an eligible mental health condition.
• Secondary:
  • Families of those Veterans (who may see reduced financial and emotional strain).
  • Veterans Affairs Canada and the Government of Canada, which would pay the program costs.
  • Local mental‑health providers and provincial health systems, which may see increased demand.
• Not eligible: serving members of the Canadian Forces (they are covered by the Department of National Defence) and most RCMP members unless their claim relates to Canadian Forces service.
• Numbers and costs the department estimated:
  • about 27,000 Veterans would access the benefit over 10 years,
  • 1,325 of those would receive an unfavourable disability decision but still get two years of coverage,
  • average historical cost per client used in the costing was $3,641 (adjusted to $3,681 in 2021 dollars),
  • total government cost (present value) estimated at $40.7 million, split into $34.2 million operating and $6.5 million program costs,
  • Budget 2021 had proposed $140 million over 5 years (starting 2021–2022) and $6 million per year ongoing for the overall initiative.

Note: this item in the Canada Gazette is a Part I publication proposing the changes and inviting comment, not a final law.

Why it matters#

• Practical effect: Veterans can get faster coverage for counselling and some medications instead of waiting months or years for a decision on their disability claim. That can mean earlier treatment and less out‑of‑pocket spending.
• Health impact: Early access aims to reduce the chance that mental health problems get worse and to lower risks such as suicidal ideation.
• Financial trade‑off: The government expects to spend more money overall (net present cost −$34.2 million), while Veterans and families gain financial security and earlier care.
• System effects: The program may increase demand on already stretched mental health services in provinces and on community providers.
• Important caveat: these are proposed regulations. They were published for comment and could change before (or instead of) coming into force.