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  1. Jul 24, 2024 · Canada: Health System Financing. “The principal source of health system finance is taxation by the provincial, territorial and federal governments: general taxation provides well over two thirds of all financing for health (Table 3.2). Since medicare services (hospital, diagnostic, medical care, designated surgical-dental services and ...

  2. Our health care costs rose sharply in 2020 and 2021 due to increased health care costs associated with the pandemic. While pandemic specific health care spending is expected to subside in the aftermath of COVID-19, continued increases in health care spending are expected to fund: health care deferred during the pandemic (i.e., surgical backlogs)

  3. Canada’s total health spending was expected to reach $344 billion in 2023, or $8,740 per Canadian. That’s about 12.1% of our GDP, making Canada a top spender among OECD countries. More than half of health spending goes to three areas: hospitals (26%), drugs (14%) and physicians (14%). And, yes, equipment is expensive.

    • Executive Summary
    • 1 Introduction
    • 2 Federal Authority For Providing Funding For Health Care
    • 3 Directed Funds For Home Care and Mental Health
    • 4 Total Public and Private Health Spending
    • 5 The Impact of The Covid-19 Pandemic
    • 6 Conclusion
    • Notes

    The federal government has authority over matters related to health and health care derived mainly from its criminal law power for issues related to public health and safety, and from its spending power through which it makes transfers to the provinces and territories, including health transfers. The federal government contributes to the provinces'...

    Canada does not have a single health care system; rather, each of its provinces and territories1provides publicly funded health care. In addition, some health services are not covered by provincial public insurance programs. Accordingly, the total health expenditure in Canada comprises public funds from provincial and federal sources, as well as pr...

    2.1 Constitution Act, 1867

    The division of powers between federal and provincial governments with respect to health is not specifically addressed in the Constitution Act, 1867,2except as it concerns the assignment of federal responsibility for quarantine, the establishment and maintenance of marine hospitals, and the assignment of provincial responsibility for operating most other hospitals. Rather, jurisdiction for health and health care has been assigned using indirect powers. The federal government derives its autho...

    2.2 Canada Health Act

    The CHA7 was passed by Parliament in 1984 and came into force the following year; the long title is An Act relating to cash contributions by Canada and relating to criteria and conditions in respect of insured health services and extended health care services. As the long title indicates, the CHAaddresses federal funding for insured and extended health care services. Section 3 of the CHA sets out the primary objective of the Government of Canada's health care policy, which is “to protect, pro...

    2.3 Canada Health Transfer

    Under section 5 of the CHA, “as part of the Canada Health Transfer, a full cash contribution is payable by Canada to each province for each fiscal year.” The CHT, established under the FPFAA, is the largest of the transfer programs.8 The federal government can withhold some of a province's CHT if it is determined that the CHA has been contravened in that jurisdiction. In terms of penalties, provinces can be subject to a dollar-for-dollar deduction of the CHT if a medical practitioner in that...

    In addition to providing an annual contribution to the provinces through the CHT, the federal government can also provide directed funds for health care. However, directed funds generally cover a specific period of time, with no commitment to continue the funding indefinitely. Unlike the CHTand other major federal transfers, this type of transfer t...

    Total spending on health care has risen steadily in Canada since 1975, the first year for which the Canadian Institute for Health Information (CIHI) has data. According to a 2019 CIHI report, total annual health expenditures increased from $100 billion to $200 billion between 2000 and 2011, and reached an estimated $264.4 billion in 2019. At that t...

    In July 2020, Canada's premiers agreed to the federal-provincial Safe Restart Agreement, which will provide $19 billion to the provinces to respond to future waves of COVID-19 and to restart their economies. Although the agreement is not specific to health care funding, it provides federal funds to the provinces to address some of the additional he...

    Canada's health care system is funded primarily through federal and provincial public dollars. The federal contribution is made through the Canada Health Transfer and it accounts for about 23% of the public funds. The federal government has also committed directed funding over ten years for mental health and home care beginning in 2017. While almos...

    † Library of Parliament Background Papers provide in-depth studies of policy issues. They feature historical background, current information and references, and many anticipate the emergence of the issues they examine. They are prepared by the Parliamentary Information and Research Service, which carries out research for and provides information an...

  4. The organization of Canada's health care system is largely determined by the Canadian Constitution, in which roles and responsibilities are divided between the federal, and provincial and territorial governments. The provincial and territorial governments have most of the responsibility for delivering health and other social services.

  5. Healthcare Financing and Funding. Models for financing health care services provided across the continuum of care, but particular those outside the acute care system (e.g., pharmaceuticals, long-term care, home and community care), and their impacts on efficiency and equity, including the distribution of financial burden and implications for accessibility faced by patients and their families.

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  7. 3.3. Overview of the statutory financing system. There are two levels of statutory or compulsory funding and coverage for health services. The first is universal medicare, which includes medically necessary hospital, diagnostic, medical care, designated surgical-dental services and inpatient drug therapies that are provided free at the point of use and prepaid through general taxation.

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