Federal Health Claims Processing Services (FHCPS) procurement

A1. Veterans Affairs Canada (VAC), the Canadian Armed Forces (CAF), and the Royal Canadian Mounted Police (RCMP) deliver a wide range of health benefits and services to qualifying Veterans and their families, and CAF and RCMP members. The Federal Health Claims Processing Services (FHCPS) contract is used to manage claims processing for most of these health care benefits and services. These services include:

• Assessing participants claims, and authorizing them if they qualify;
• Reimbursing participants or health care providers for authorized claims;
• Answering participant questions about health care authorizations and reimbursements;
• Registering and keeping a list of health care providers who can bill us directly; and
• Supporting VAC, CAF, and RCMP policies and processes, so we are transparent and accountable to clients.

Currently these services are provided through a contract with Medavie Blue Cross (MBC), which is anticipated to end in 2026-27.

A2. All qualified CAF, RCMP members, and VAC participants with a Medavie Blue Cross health care card use FHCPS. In 2023-24, this was approximately 300,000 participants.

A3. The current FHCPS contract is expected to end in 2026-27. To continue to provide and process health care benefits and claims, VAC, CAF, and DND will continue to collaborate on the next FHCPS contract.

A4. The next FHCPS contract will be operational once the current contract ends, which is anticipated for 2026-27.

A5. No, the next contract will not change the benefits and services you receive or how you qualify for them. The next FHCPS contract will be evolved to assist us in improving how we manage and pay for your benefits and services.

We expect a seamless transition to the next contract. You will continue to get the benefits and services to which you qualify.

A6. Yes. We take the responsibility of protecting your personal information seriously. The FHCPS contractor must meet Government of Canada security standards and confirm your information is protected in accordance with the Privacy Act.

A7. Yes. We consulted participants who receive treatment benefits using a CAF, RCMP, or VAC-issued health care card in the summer of 2022.

Through the Let’s Talk Veterans platform, we received feedback from more than 200 participants who helped us identify areas they want us to focus on, including:

• simplified processes for claim reimbursements
• clearer information about eligibility requirements
• increased use of digital communication and tools

In May and June of 2024, we conducted a follow-up survey, which explored the need for Veterans to have more clarity around eligibility for treatment benefits and services. The feedback we received from more than 400 participants will help us improve the clarity of information Veterans receive with their VAC healthcare card, treatment benefit package, and online.

We continue to consult with Veterans and other participants through various methods, including Let’s Talk Veterans consultations.

A8. The next contractor hasn’t been selected yet. Public Services and Procurement Canada (PSPC) is responsible for the procurement process. They are the Government of Canada’s Centre of Expertise for procurement and contracting.

Our goals for the procurement process include:

• consulting with FHCPS users, employees, and other stakeholders
• awarding a contract that provides the best possible health claims processing and related services
• achieving good value for Canadians
• ensuring a seamless transition to the next contract

The process to select the new contractor is competitive. PSPC posted a Request for Proposal (RFP) to CanadaBuys.ca in March 2023 and interested parties submitted their bids by July 2023. PSPC is evaluating the bids to find the best service and value for Canadians. Results of that process are expected to be announced in the fall of 2024. PSPC appointed an independent fairness monitor to make sure the process is open, fair, and competitive.

A9. The term and dollar amount of the contract will be determined once it’s awarded, which is expected to happen in the fall of 2024.

A10. The FHCPS contract is used to process health claims for Treatment Benefits, long-term care, and the Veterans Independence Program (VIP).

If you have further questions, please call 1-866-522-2122.