canadian health care

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When it comes to Canadian health care, everyone seems to agree our system has problems and needs to be improved. But the discussion always seems to end there, with any new idea for reform immediately discarded by vote-sensitive politicians and vested special interest groups.


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Last week, the BC government announced it was increasing Medical Service Plan (MSP) premiums by approximately six per cent in 2010 to help fund rapidly growing health care costs. The government also pledged to keep increasing taxes for British Columbians through annual increases in MSP premiums to match continuously increased health care spending.

While the government may claim it needs the extra revenue for health care, the reality is this tax increase will do nothing to improve health care for British Columbians, and in fact, it’s the wrong approach altogether.


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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.


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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.


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When it comes to healthcare, Canada remains out of step with the rest of the industrialized world. Over the past 15 years or so, many countries with universal access health programs have been increasingly tapping into the competitive market for solutions to their health care woes. Others, like Japan and Switzerland, have always depended on competitive health care markets to deliver access to care regardless of ability to pay. Unfortunately in Canada, governments of all stripes remain steadfast in their dismissal of private sector solutions.