With rumoured spending cuts in the upcoming federal budget, look for the Conservatives to play up one area of spending theyve committed to increasing: health care transfers to the provinces. Last December, Finance Minister Jim Flaherty announced a new 10-year plan for health care transfers that will see transfers increase by six per cent for the next five years and thereafter by the rate of economic growth until 2024.
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The true cost of Medicare for individuals and families in Canada is often misunderstood, with many people thinking its either free or covered by our provincial health insurance premiums.
This misconception has many sources. In part, it stems from the fact that health care consumption is free at the point of use, leading many to grossly underestimate the actual cost of care delivered. Furthermore, health care is financed through general government revenues, rather than financed through a dedicated tax, further blurring the true dollar cost of the service.
In response to an advisory panel report commissioned by the Canadian Medical Association, CMA president Dr. Jeff Turnbull conceded that when it comes to health care financing, all options should be considered in order to manage the unsustainable growth in health care spending. The report provided 10 recommendations; among them, changing the way that hospital services are financed and allowing greater competition in the delivery of publicly funded medical services. But the most contentious endorsement was related to patient funding specifically the use of user fees.