Government needs to get proposed disability benefits bill right

By Tony Poland, LegalMatters Staff • The federal government’s pledge to establish a monthly disability benefit is promising but needs to be more than mere window dressing to truly help those who are struggling financially or living in poverty, says York Region disability insurance lawyer Courtney Mulqueen.

The Liberal government introduced Bill C-35, the Canada Disability Benefit Act (CDBA), modelled after the Guaranteed Income Supplement (GIS) that seniors receive. The bill is still before Parliament and few details are available.

Minister of Employment, Workforce Development and Disability Inclusion, Carla Qualtrough, says the proposed legislation will provide additional long-term financial support to Canadians with disabilities.

“The reality is that too many persons with disabilities live in poverty in Canada and by creating a Canada disability benefit, we are making an investment in the realization of a fully inclusive society,” Qualtrough says in a news release.

Different levels of government called together

Last week she met with provincial and territorial ministers responsible for social services for discussions on improving collaboration to support those with disabilities. Qualtrough says the gathering “represents an important step as the provinces and territories play a primary role in providing supports and services to Canadians with disabilities.” 

Charitable organizations such as the March of Dimes are encouraged by the proposed legislation. 

“For far too long, living with a disability has meant living in poverty for hundreds of thousands of Canadians,” said Leonard Baker, ]president and CEO of March of Dimes Canada. “The Canada Disability Benefit represents an amazing opportunity to address economic inequality for people with disabilities across the country.”

Mulqueen, principal lawyer and CEO, Mulqueen Disability Law Professional Corporation, says she is encouraged by the plan but many questions remain unanswered and she is concerned the legislation will not go far enough to help all those desperately in need of help. 

“This bill has the potential to provide much-needed financial security,” she tells LegalMattersCanada.ca. “Unfortunately, we do not have much information about the plan. What will the monthly benefit be? Who will be eligible? How can we prevent the clawback of existing benefits that disabled people currently receive?”

“We do know that this program will supplement and not replace existing disability benefits such as Canada Pension Plan Disability (CPPD), Veterans Disability Benefits, Workers’ Compensation, private insurance coverage, and provincial disability benefits,” she adds.

According to the federal government, about 850,000 – or 21 per cent of working-age Canadians with disabilities – live in poverty. Those with severe disabilities (26 per cent) and very severe disabilities (31 per cent) experience a high rate of poverty.

“Essential we find a way to raise the income of those with disabilities’

“It is essential that we find a way to raise the income of those with disabilities above the poverty line,” Mulqueen says. “In my disability insurance law practice, I see an entire segment of the disabled population who could benefit financially and medically from extra income to pay for treatment and living expenses and avoid financial hardship, which can serve to aggravate and prolong their period of disability.

“This proposed additional income could go a long way in providing disabled individuals with the time and money they need to focus on treatment with the goal of returning to work,” she adds.  “A type of prophylactic disability benefit could save our health-care system billions of dollars by providing the short- to medium-term support needed to recover and return to work.”

Mulqueen says there should be quick access to the benefit, as opposed to other federal disability benefits such as CPPD that can take months to receive.

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“The test for CPPD is difficult to meet and even those who should qualify are denied initially and then later approved on appeal,” she says. “The application process can be extremely stressful. It is particularly difficult for people who are suffering with serious disabilities to jump through all the hoops necessary to get the benefit. The application process alone can be overwhelming for someone suffering with a psychological or cognitive disability.

“Providing additional money that can go toward treatment at the earlier stage of a person’s illness or injury could speed recovery times,” Mulqueen suggests.

LTD claimants are also suffering financial setbacks

Mulqueen says it’s not only the permanently disabled who are struggling. Those on long-term disability (LTD) can also suffer severe financial setbacks.

“I would like to see this supplemental income be paid to individuals who have the potential to recover in the foreseeable future. My clients are typically those who have been working and when their LTD claim is wrongfully denied they are without an income,” she says. “I encourage them to apply for CPPD, but too often I see clients waiting for several months, only to be denied, despite providing significant support for their claims.

“These individuals are forced to draw on their retirement savings or even sell their homes,” Mulqueen adds. “The added stress and lack of funds for much needed treatment and living expenses can have a serious and irreparable impact in their recovery.” 

She says the financial stressors of not working “can have serious health consequences.” Allowing those on LTD to access CDBA benefits can make a big difference in their recovery.

“Without sufficient financial supports in place, their conditions can become prolonged,” Mulqueen explains. “I believe that a disability benefit that provides a supplemental income to those who are not expected to be disabled for a prolonged period could have a dramatic and positive impact on individuals who are able to recover and return to work and who will then not need CPPD.”

She says she typically counsels those whose LTD claims have been denied or terminated and they are left scrambling to find sources of income to meet their living expenses and treatment costs, particularly, when they lose their extended health coverage through their employer.

‘Supplemental income could be key in helping at a critical time’

“They need money on an urgent basis and might not qualify for social assistance. This supplemental income, if assessed and paid quickly, could be key in helping them at a critical time in their recovery,” says Mulqueen.

She also says there should be no clawback of existing supports and benefits for those receiving CDBA payments.Mulqueen says it is vital that CDBA benefits be a top up while maintaining existing funding.

“It is standard for LTD insurance policies to reduce the benefit amount they pay to those who receive CPPD,” she says. “This means that my clients can never receive more than the amount of their LTD benefit from any source.  

“However, even with LTD, many clients struggle to meet their living expenses and fund their treatment because they receive only a percentage of what they were earning while they were working. A clawback would only enrich the insurance companies and do nothing to help disabled individuals get back on their feet financially and medically.”

Mulqueen says it would also be a good idea to include a “generous earnings exemption, which would allow disabled individuals to attempt to work and earn an income knowing that if they are not successful, they will not need to reapply for benefits.  This would encourage more people to try to get back to work before they might have otherwise..”

She says she is anxious to see how the government plan plays out.

“It is important that they get this right,” Mulqueen says. “Poverty is a burden the disabled should not have to endure.”

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