canadian health care

In the debate over health care reform in Canada, defenders of the status quo often resort to the tired old claim that a greater role for competition, private financing, or private provision of health care services in Canada would mean the ‘Americanization’ of health care.

Indeed, the claim is often made that proponents of private financing and delivery of health care in Canada are recommending the U.S. approach to health care policy.

It’s well time we put this misleading and false argument to rest.

The Conservative’s 2007 budget contained substantial increases in cash transfers to the provinces through equalization, the Canada Social Transfer, and the Canada Health Transfer. According to the government, the intention is to address the fiscal imbalance between Ottawa and the provinces and to improve Canadians’ access to government services such as health care.

But an examination of the history of federal transfers for health care suggests that Monday’s announcement is likely to produce little benefit while costing a great deal.