- Canada and Health Care Funding - Who Pays For Universal Health Care in Canada?
In Canada, health care is publicly funded. The universal health
care system is regulated through the Canada Health Act which sets the requirement for a publicly administered
universal health insurance system.
Funds collected by the
federal government through taxation are transfered back to the provincial and territorial governments to
administer the system of health care in Canada. Health care is not free as only medically necessary services
are required to be publicly funded.
Canadians pay taxes through a number of taxation programs including income tax and sales tax.
Some of this money is returned to the provincial government for the purpose of funding the universal health care system.
This is called a "transfer payment".
Facts About Canada, Health Care, and Money
In Canada, health care spending for administrative costs is less than 2% of expenditures.
Under the Canada Health Act the
provincial governments are required to report annually to the federal government about activities and funding issues in the delivery of
health care services. There is a complex formula used to determine the amount of the funds that are transferred back to the
provincial government.
Despite the fact that the health care system is publicly funded in Canada, health care is not
"free". Many goods and services are not covered under provincial health insurance plans and must be paid for privately. This would include
services like:
physiotherapy provided as an outpatient
chiropractic treatments
family counselling
drug and alcohol counselling
home health equipment like bedpans, hospital beds, and wheelchairs
prescriptions
......................and much more.
Some Canadians may carry supplemental medical insurance through their employment to
cover some of these costs but they are not part of
the basic level of health insurance provided through the universal health insurance plans offered in each province.
A Story About Living in Canada, Health Care Access, Service, and Affordability
Beverly falls and injures her leg. Her husband takes her to the nearest emergency center where she is seen by a physician.
Her leg is leg X-rayed and a diagnosis of fractured tibia is made. The physician on duty
applies the cast and Beverly is sent home on crutches.
Beverly's personal physician follows up her care with a telephone visit and provides all the necessary
documentation for medical leave from her job, prescriptions for pain, and directions for future followup and care.
Beverly attends two follow up visits to the outpatient cast clinic at the hospital.
On the first visit to the outpatient clinic the cast is changed and on the
final visit the cast is removed.
When Beverly was first admitted to the emergency room she was required to show her individual health insurance card.
At no time was Beverly's ability to pay for service questioned and no bill was delivered for
physician services, hospital services or any of the tests.
Total time from accident to return home from the emergency room visit was 2 hours.
Beverly did have to pay for the crutches. And YES this really did happen to me!
More About Canada Health Care, Universal Health Insurance, and Other Supports for
Universal Health Care in Canada
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