Canada’s Premiers call federal government to increase its share of health care costs from 22% to 35%

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What began as a 50-50 split has dwindled to Ottawa covering just 22% of health care cost

VICTORIA, BC: Canada’s Premiers came together in Victoria for their first in-person meeting in over two years, to emphasize the urgent need for a new, sustainable health care funding partnership for Canadians. As we emerge from the COVID-19 pandemic, which has intensified the pre-existing fractures in our health systems’ foundations, we are at a critical point for the sustainability of our health care services. Canadians cannot wait any longer.

Canadians should be able to receive the tests, procedures and health services they need when they need them. Premiers reiterated their unanimous call for the federal government to increase its share of provincial-territorial health care costs from 22% to 35% through the Canada Health Transfer (CHT) and to maintain it at this level over time.

“People need more doctors, nurses and care aides. The health care system across Canada is near crisis.  What began as a 50-50 split has dwindled to Ottawa covering just 22%. We need a fair deal and a renewed partnership to deliver the care people need – now,” said BC Premier John Horgan, who was Chair of the Council of the Federation, and hosted the 2022 Summer Meeting of Canada’s Premiers on July 11 and 12 at the Fairmont Empress in Victoria.

Resolving this structural funding shortfall would allow provinces and territories to address their diverse needs and accelerate progress in delivering better access to care for Canadians. That’s why Premiers have asked repeatedly to meet with the Prime Minister to put health care on a sustainable path. They repeated their urgent call for a First Ministers’ Meeting to resolve this issue.

“I know the Prime Minister understands how important health care is to people.   It’s time for his actions to match his words,” Horgan said.

Short-term, one-time targeted funding cannot repair the foundations of our health care systems; but increased, predictable and recurrent federal funding can make a direct and tangible difference in the lives of Canadians. A strong majority of Canadians agrees that federal funding must be sustainable and flexible. This can only happen through the CHT. “There’s no greater expression of our shared values than universal public health care. Unlike our cousins to the south, Canadians can access the care they need with a health card, not a credit card. But the system people rely on across the country is in crisis,” he added.

The health care workforce is the bedrock of Canada’s health care systems. Premiers appreciate health workers’ ongoing, critical work. Provinces and territories are working to address immediate challenges facing our health care systems and to achieve longer-term improvements including in areas such as health human resources, long-term care, home care, mental health and substance use, pharmaceuticals, primary care, and digital and physical infrastructure.

BC Nurses Union President Aman Grewal joined with other nursing union presidents from across the country to take this opportunity to emphasize the dire staffing crisis that all provinces are facing. “We need all levels of government at the table to develop solutions and nurses must be there too. Our provincial and territorial governments cannot fix this problem on their own,” said Grewal. “We need the federal government to act swiftly. The system needs a comprehensive health human resources plan to improve supports for the provinces in order to prevent the health-care system from collapsing.”

Canada’s Health Coalitions called for a new health accord. “Provincial and territorial governments are right to call on the federal government to reverse Ottawa’s declining share of health care spending. At the same time, we have noted with alarm that ideologically driven provincial governments have used the cover of COVID-19 to expand the private provision of health care services including surgical and diagnostic procedures, long-term care and out-patient care. Many of these same provincial governments have said they will refuse to participate in the planned expansion of our national Medicare umbrella to include pharmcare and dental care,” it said in a release.