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| Courtney Mulqueen |
We are dealing with a great deal of economic uncertainty due to American threats of harsh tariffs and there is certainly reason to believe a trade war will hurt the health-care industry. Tariffs could touch our lives in many different ways, including negatively impacting prescriptions and medical devices. As a result, LTD claimants may soon be forced to make some extremely difficult financial decisions.
President Donald Trump has threatened to slap a 25 per cent tariff on virtually all Canadian and Mexican goods, which could lead to a North American trade war that economists predict could do long-lasting damage to each country’s economy.
Outgoing Prime Minister Justin Trudeau has accused Trump of trying to prompt “a total collapse of the Canadian economy” making “it easier to annex us.”
Trudeau called the tariffs “completely bogus and completely unjustified,” adding the move is a “very dumb thing to do.”
Some Canadians could face a bleak future if Trump follows through on his threats. For those receiving LTD benefits, making ends meet in a trade war will certainly be more difficult. Even now, some are making a tough choice between treatment and groceries.
Doctors on both sides of the border have concerns of what lies ahead.
“If Ontarians do not believe a trade war will be bad for our publicly funded healthcare system, I am here to tell you I am worried sick as a hallway ER doctor,” Raghu Venugopal, a Toronto-based emergency physician, wrote in a tweet reported by the Walrus.
The publication states that about 40 per cent of Canada’s imported medical devices come from the United States. Medications are also expected to be impacted.
“There’s a concern here that any sort of tariff war could send ripples throughout the supply chain,” Mina Tadrous, an assistant professor at the University of Toronto’s Leslie Dan Faculty of Pharmacy, told Global News.
American health-care providers are also concerned about the potential impact of the tariffs. The American Hospital Association (AHA) stated that they stand with the president “in seeking ways to prevent the ravages of illicit drug use in this country” but wonder about what the future holds.
“We commend your focus on this issue,” AHA president and CEO Richard Pollack wrote in a letter to Trump. “We are, however, concerned that the approach of using tariffs may inadvertently put others' lives at risk by jeopardizing the availability of vital medications and essential health care devices.
“We ask that you consider granting exceptions to the current and proposed tariffs for medical devices and pharmaceuticals made in Mexico, Canada and China that are essential to the provision of safe, effective care in America's hospitals, clinics, and other settings.”
While the impact of tariffs may be on the minds of those within the health-care profession, the average person may not have fully considered what it means for the price and availability of prescriptions and medical devices.
The fallout from tariffs could lead to economic uncertainty, and when people are unsure about their financial future, that can trigger anxiety. Those already suffering from a mental health issue may encounter more challenges.
Much has been made about the prospect of tariffs leading to higher consumer prices. But for those receiving only a portion of their regular income in insurance benefits, the prospects are much worse. Should they start stocking up on their medications? Can they even afford to do that?
The cost of living has been an issue for most Canadians over the past few years, pushing people to their limits. We struggled through the pandemic and now we are faced with potential financial stressors that could make an existing mental health condition worse and even trigger new ones.
It should be noted that long-term disability claimants must prove they are receiving the appropriate treatment to continue to receive benefits. If not, their claim can be denied or terminated.
Even if money is tight, they still must pay for necessities such as food, a mortgage and utilities, potentially limiting certain treatment options. Some claimants may feel forced to return to the job even though they haven’t fully recovered.
There are also those presently having difficulty getting the medication they need because of supply chain issues. Will that get worse with tariffs?
It is not just LTD claimants who could feel the pinch.
Insurers will no doubt have to deal with the impacts of a trade war. If they are funding 80 per cent of the cost of medications, will they lower that percentage or increase premiums? And if premiums increase, will the average person still be able to afford coverage?
A trade war could lead to more people facing yet another challenge to funding appropriate treatment, which puts them at a very real risk of having their benefits terminated. Life then gets much worse for these unfortunate people. If they cannot afford treatment, or they are not getting it when needed, that is sure to prolong recovery times.
If a trade war does indeed happen, it is clear we do not fully understand how it will impact Canadians. I have my doubts that there is a way for people to prepare fully for what lies ahead. We need some guidance. LTD claimants deserve it.
Courtney Mulqueen, of Mulqueen Disability Law, has over 20 years of experience litigating disability claims. Her focus and passion is representing plaintiffs with disabilities who live with complex “invisible conditions,” like mental illness and chronic conditions that are difficult to prove, diagnose and treat.
The opinions expressed are those of the author and do not reflect the views of the author’s firm, its clients, Law360 Canada, LexisNexis Canada or any of its or their respective affiliates. This article is for general information purposes and is not intended to be and should not be taken as legal advice.
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