Federal Health Claims Processing Services (FHCPS) Procurement

Veterans Affairs Canada (VAC), the Canadian Armed Forces (CAF), and the Royal Canadian Mounted Police (RCMP) each provide a wide range of health benefits and services to Veterans, their families, and eligible serving members of the CAF and RCMP. Claims processing and related services are provided through the Federal Health Claims Processing Services (FHCPS) contract. A new contract has been awarded to Medavie Inc. It will go live in August 2027. This provides us an opportunity to update our service delivery to better meet the needs of Veterans, employees, and providers.

Questions and Answers

Contract award

Q1. Who is the next FHCPS contractor, and how were they selected?

A1. The next contractor is Medavie Inc.

They were chosen through a competitive selection process. Public Services and Procurement Canada, serving as the Government of Canada’s Centre of Expertise for procurement and contracting, worked with us to ensure the selection was a fair and transparent process. This approach ensured both the Department and the Government received the best value. We gathered input from employees, industry experts, and Veterans to determine the contract needs and requirements.

Q2. How will the next FHCPS contract affect me?

A2. The next FHCPS contract won’t change the healthcare benefits and services you receive or how you qualify for them.

You don’t need to do anything right now. You can continue to use your VAC healthcare card and submit claims as usual. Before the next Contract goes live, you will be sent your new card in the mail, as well as information on any changes.

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

Q3. Can I continue to use my plastic VAC healthcare card and submit claims?

A3. Yes, you can continue to use your VAC healthcare card and submit claims as usual until a new card for the next contract is sent to you.

Q4. When will the next FHCPS contract start?

A4. The contract will go live in August 2027.

Q5. What is the term and dollar amount of the next FHCPS contract?

A5. On 7 March 2025, the FHCPS contract was awarded to Medavie Inc., valued at $711M (includes applicable taxes), which includes implementation of the next contract and an initial eight-year operation phase.

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General

Q1. What is the Federal Health Claims Processing Services (FHCPS) contract?

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:

• Authorizing eligible benefits and services and processing participant claims;
• Reimbursing participants or health care providers for authorized claims;
• Answering participant questions about health care authorizations and reimbursements;
• Registering and maintaining a list of qualifying health care providers who can bill us directly; and
• Supporting VAC, CAF, and RCMP policies and processes, to ensure transparency and accountability.

These services are provided through the current contract with Medavie Blue Cross (MBC).

Q2. Who uses the FHCPS contract?

A2. Services provided through the FHCPS contract are used by all eligible CAF, RCMP members, and VAC participants with a VAC healthcare card. In 2023-24, about 300,000 people used these services.

If you qualify for certain VAC benefits and services, you may also qualify for healthcare coverage through the Treatment Benefits program. The FHCPS contract helps manage claims and services for healthcare related to your service-related health conditions. You do not need to apply separately for the treatment benefits program or for a VAC healthcare card. If you qualify for the Treatment Benefits program, you will receive information about your coverage and card.

Q3. Why is the next FHCPS contract needed?

A3. The current FHCPS contract will be ending. We are putting the next contract in place to ensure you continue to receive the benefits and services you qualify for.

Q4. Does the next FHCPS contract impact my Public Service Health Care Plan (PSHCP)?

A4. No, the Public Service Health Care Plan (PSHCP) is a separate, voluntary health insurance plan that is not affected by the FHCPS contract. PSHCP Participants are responsible for paying monthly premiums. The contractor for PSHCP health insurance is Canada Life Assurance Company. Learn more and apply.

Q5. Will my privacy and personal information be protected?

A5. Yes. We take the responsibility of protecting your personal information seriously. The FHCPS contractor must follow and meet Government of Canada security standards and ensure your information is protected in accordance with the Privacy Act.

Q6. Have Veterans and other participants been consulted about the next FHCPS contract?

A6. Yes. We consulted participants in the summer of 2022 who were in receipt of treatment benefits using a CAF, RCMP, or VAC-issued healthcare card. Using the Let’s Talk Veterans platform, we gathered feedback from over 200 participants who helped us identify areas they want us to focus on, including:

• simplifying claim reimbursement processes
• providing clearer information about eligibility requirements
• increasing the use of digital communication and tools

In May and June of 2024, we did a follow-up survey to better understand the need for clearer information about treatment benefits and services. Over 400 participants provided feedback, which 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.

Q7. Where can I get more information about the FHCPS contract?

A7. The FHCPS contract is used to process health claims for Treatment Benefits, Long-term Care, and the Veterans Independence Program (VIP). Visit our website to learn more about these benefits and services, and whether you qualify.

If you have more questions, please call us at 1-866-522-2122.

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Providers

Q1. How will the next contract affect providers?

A1. There is no change at this time to how health claims are processed. Providers will be notified in advance of any changes that may impact them.

Q2. Where should providers refer questions or concerns about the next contract?

A2. Providers should continue using the same processes until the current contract ends. We will notify providers in advance if the next contract requires process changes. Providers can refer questions and concerns to:

• General inquiries: Call Medavie Blue Cross at 1-888-261-4033
• General inquiries about the next contract: Call the VAC National Client Contact Centre at 1-866-522-2122