This article on the problems with the Canadian public health care system is worth reading. The opener:
TORONTO, ON – Provincial spending on health care is growing faster than revenues with six of 10 provinces projected to be spending more than 50 per cent of all available revenue on health care by 2036, says a new report released today by independent research organization the Fraser Institute.
The Fraser Institute’s piece quotes Director Brett Skinner:
“Over the past ten years, health care spending in nine out of 10 provinces has grown at an unsustainable rate. Unless governments find a better way to finance health care, then provincial governments will likely be looking at tax hikes, further rationing of medical goods and services, or ugly trade-offs with other important spending areas.”
Apparently Alberta is the only Canadian province that’s managed to keep its revenues apace with health care expenditures. How? Energy-driven revenue increases.
But in provinces without large energy resources, revenue has been increased through – what else? – increased taxes. Skinner points to Ontario’s “health premium” income surtax as an example of a provincial government trying to create new taxes to cover health care costs. Says Skinner:
“The tax burden cannot continue to rise over the long-term unless people are willing to accept declining rates of economic growth and lower standards of living. Trying to drive long-term revenue growth through tax increases is futile.”
The report concludes that Canada’s public health insurance system is not financially sustainable through public means and recommends several changes. You can read about them at the end of the piece.
All suggested changes have one thing in common: they are private sector solutions. I say we learn from our neighbors to the north and seek private sector solutions now.
