This report studies the financial sustainability of health spending by provincial governments in Canada. This report uses an empirical trend analysis to estimate long-term future sustainability. The trend is derived from the average annual growth rates for total provincial government health expenditures and total available provincial government revenue from all sources over the most recent 10-year period. Government spending on health care is considered to be financially unsustainable when it grows faster (on average) than revenue over the trend period.

This report also examines the long-term feasibility of the attempts of provincial governments to deal with the unsustainable growth in health spending through increased taxation and centrally planned rationing. Our analysis partially exposes the degree to which Canadians are paying more for government health insurance while getting less in return.