Canada’s universal healthcare system, also known as Canadian Medicare, is decentralized and publicly funded. It provides relatively equitable access to medically necessary healthcare services through 13 provincial and territorial tax-funded public insurance plans. The recent COVID pandemic, in addition to a lack of healthcare workers, lengthy access wait times, and anticipated increases in demand for care brought on by an aging population have put a strain on Canada's healthcare system. In 2022, overall health expenditure in Canada is predicted to be 331 billion Canadian dollars or 8,563 Canadian dollars per person. It is predicted that health spending will account for 12.2 percent of Canada's gross domestic product (GDP) in 2022.
How is health care funded?
The Canadian healthcare system is financed by using a mix of federal and provincial revenue collected through taxation, such as personal and corporate taxes, sales taxes, payroll levies, and other revenue, but it is administered at the local level. More than 70 percent is funded by the provinces and territories, while the federal government funds around 25 percent through the Canada Health Transfer (CHT). The CHT is the largest single transfer that is made to the provinces and territories. Currently, the provincial governments are urging the federal government to unconditionally and immediately raise the share of healthcare costs funded to 35 percent and maintain it long-term to help cover the rising health costs. However, the federal government is in support of conditional transfers that are targeted toward specific issues that are seen as "national priorities" such as mental health and long-term care for the elderly.
Total healthcare expenditure
The Canadian Institute for Health Information (CIHI) reports that hospitals, physicians, and prescription drugs accounted for over 50 percent of the total health expenditure (THE) in 2022. Spending on the hospital category alone amounted to over 80 billion Canadian dollars in 2022, the largest category of THE. In response to the pandemic in 2020, the Canadian government set aside a separate budget for COVID-related expenditures. The average per capita spending on COVID-19 varied significantly between provinces in Canada from 2020 to 2022. The total health expenditure is largely funded by the public sector, while the private sector was predicted to account for nearly 28 percent in 2022. Healthcare services like prescription drugs, dental, and vision care are usually out-of-pocket expenses, accounting for nearly 15 percent of THE in 2019. Although, among all OECD countries the Canadian healthcare system is one of the most expensive it has ranked poorly when comparing the performance indicators.
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FAQs
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.
What is the main issue in healthcare in Canada? ›
Hospitals are at or over capacity, surgeries and procedures have been delayed and there is increasing need for mental health services. Adding to the pressures, health care providers are burned out and some are leaving their profession.
What are the top 3 healthcare expenditures? ›
In 2019, hospital care spending (37.2%) made up the largest share of personal health care expenditures, followed by spending on physician and clinical services (24.1%), prescription drugs (11.5%), nursing care facilities and continuing care retirement communities (5.4%), dental services (4.5%), and home health care ( ...
What is the cost of healthcare in Canada? ›
In 2022, overall health expenditure in Canada is predicted to be 331 billion Canadian dollars or 8,563 Canadian dollars per person.
What are the biggest expenses in Canada? ›
Housing costs are likely to be one of your biggest expenses when living in Canada. And just like anywhere else in the world, the cost of housing varies depending on the type of dwelling you choose and its location and size.
What is the biggest health concern in Canada? ›
Chronic diseases and conditions are the leading cause of death and disability in Ontario. The most common are cancers, cardiovascular diseases, chronic respiratory diseases and diabetes.
What problems does Canada have with healthcare? ›
Looking only at the number of work hours people lost while in line for care, the Fraser study determined that healthcare waits cost Canada just under $3,000 per person—$3.6 billion total—in 2022. Consider all the hours in a week, and medical waits cost the country $10.9 billion—just under $9,000 per patient.
What are the weaknesses of Canadian healthcare system? ›
Only 37% of Canadians report that they can get an appointment with their primary care physician within 48 h, and data from primary care physicians themselves similarly suggest timely access is not good when compared to other OECD countries.
What is healthcare expenditure? ›
Health spending measures the final consumption of health care goods and services (i.e. current health expenditure) including personal health care (curative care, rehabilitative care, long-term care, ancillary services and medical goods) and collective services (prevention and public health services as well as health ...
What is the current healthcare expenditure? ›
U.S. health care spending grew 4.1 percent in 2022, reaching $4.5 trillion or $13,493 per person.
There are many possible reasons for that increase in healthcare prices: The introduction of new, innovative healthcare technology can lead to better, more expensive procedures and products. The complexity of the U.S. healthcare system can lead to administrative waste in the insurance and provider payment systems.
What are the flaws in Canada's healthcare system? ›
The reality of Canadian health care is that it is comparatively expensive and imposes enormous costs on Canadians in the form of waiting for services, and limited access to physicians and medical technology. This isn't something any country should consider replicating.
What are the trends in Canada's healthcare system? ›
Some key emerging trends in Canada's healthcare system include the evolution of artificial intelligence and wearable technology in medicine, innovation development in telehealth, and the expansion of mental health treatment.
What is healthcare like in Canada? ›
Under this system, all Canadian residents have reasonable access to medically necessary hospital and physician services without paying out-of-pocket. Roles and responsibilities for health care services are shared between provincial and territorial governments and the federal government.
Which is the second largest component of health spending in Canada? ›
Therefore, Physicians spending now accounts for the second-largest share of total health spending, whereas in previous years it was the third-largest share.
What does Canada spend most money on? ›
Spending on health care by provincial, territorial, and local governments combined grew 4.5% from 2021 to $225.8 billion in 2022, maintaining its position as the largest expense of these governments, at over one-third (34.4%) of total spending.
What is the government's biggest expenditure? ›
The largest federal transfer programs and the 2023 spending amounts are Social Security ($1.3 trillion), Medicare ($1.0 trillion), veterans' programs ($168 billion), refundable tax credits ($144 billion), and food stamps ($135 billion).
How is Canadian healthcare funded? ›
Each provincial and territorial health insurance plan covers medically necessary hospital and doctors' services that are provided on a pre-paid basis, without direct charges at the point of service. The provincial and territorial governments fund these services with assistance from federal cash and tax transfers.
