The high cost of free health care in Canada
Canada is admired around the globe for its free health care system.
But is it really free?
According to a new report from the Fraser Institute, a Canadian family of two parents and two children will pay on average $11,320 in taxes for public health care insurance in 2013.
"And that cost rose 1.5 times faster than the average income over the past decade."
Since 2003, the cost of health care for all family types increased 53.3 per cent before inflation. And the price of public health insurance increased more than 1.5 times faster than the cost of shelter and clothing, more than twice as fast as the cost of food, and nearly 1.5 times faster than the average income over the past decade, according to the report.
The report calculates the amount of taxes Canadian families will pay to all levels of government in a year and the share of their total tax bill earmarked for public health insurance.
It notes that 10 per cent of Canadian families with the lowest incomes (averaging $13,011) will pay on average about $482 this year for public health care insurance; 10 per cent of families earning an average income of $56,596 will pay $5,364; while families among the top 10 per cent of income earners will pay about $35,309.
Thinking of all that tax money just about makes me sick. Good thing I have free health care in Canada.
By Donna Donaldson, MSN Money
Does Canada's health care system work efficiently considering the amount of money we invest in it?
Posted by: Albertan | Jul 30, 2021 5:51:24 PM
I find this article to be incredibly selfish and self serving. We have always known our taxes go towards healthcare and given that I have lived long enough to know what it was like before Mr Douglas' reform, I will gladly pay. As stated previously, you like the system so well down south, please move there. Then when you go broke trying to pay your medical bills or try to get care that your insurer denies don't come crying back to Canada. We may wait at times but it is still a far cry from losing our homes or savings or going so far into debt we can never see daylight again. Please, please take your complaints and move south, you won't be missed.
Posted by: baj | Jul 30, 2021 6:00:51 PM
The problem with health care cost in Canada is not with the service that is being provided, it lays with the riducilious amount of money they pay the ceo's and management to run the system, and they are running it into the ground, they are the ones who cut back the services and increase waite times by laying off the people who provide those services, so that they can insure raises for themselves and hire others to hand down the parts of their jobs that they don't want to do. our CEO recently stated that they reduced management and support positions by 11 employees and what they arctually did was let 2 go and just reclassify the others into new job titles and probably a higher rate of pay, so where was the saving there. The CEO alone makes more money then the Primer Minister and that is just his salary not to mention whatever else this province is footing the bills for, for him to do his job.
Posted by: Tara | Jul 30, 2021 6:04:00 PM
I would gladly pay that invisible amount over the course of a year than have to go bankrupt and have my home foreclosed upon in the event of a health crisis. My mom's quadruple bypass and my dad's multiple kidney surgeries (both due to hereditary issues, not lifestyle factors, not that this should matter) would have bankrupted me ten times over. My dad's "secure" Nortel pension was cut by over half when he was 84 and his healthcare benefits he paid into for over 40 years working for that unethical company were cut entirely, leaving him and my mom with no safety net. If it weren't for Canadian healthcare, they would both have been dead long ago. And I'd be living on the street.
Posted by: Maureen | Jul 30, 2021 6:07:22 PM
I am a 72 year old senior and a proud Canadian. With an annual income of $20,000 per year. I am diabetic, have high cholesterol, high blood pressure, and hypo thyroidism. On my taxes last year I paid $541.00 for the provincial drug plan and $200.00 as my health care share which totals $741.00 a year that I pay for health care in taxes.
My annual drug prescriptions cost about $3,000.00 per year. At the drug store I pay about $600.00 per year out of pocket which is a saving of about $2,400.00 a year. Dentist visits and glasses are my responsibility which is usually less than $500.00 per year. I can claim as a deduction on my income tax any medical expenses that I have paid out of my pocket.
So for health & drug plan taxes of $741.00 plus $600.00 at the drug store and $500.00 for glasses and dental visits comes to $1,841.00 per year.
Now, tell me how much a senior in the same situation would pay in the good ole USA or anywhere else.
The only ones who seem to have a problem with our health care system are rich Americans who don't want to pay their fare share and so try to poke holes in the Canadian Health Care System to try to prove that President Obama's Plan won't work. By the way what ever happened to "government by the people for the people"? It has now become Government by the RICH for the RICH.
So, God Bless Canada, eh??
Posted by: Shirley | Jul 30, 2021 6:11:10 PM
As someone who has just been diagnosed with Lymphoma, I'm happy that we have the system that we do. We are extremely fortunate that no matter who you are if you need medical attention it's there for you. That is more than our neighbours to the south can say...without mortgaging their homes, life savings and future!
Posted by: Steve | Jul 30, 2021 6:17:58 PM
Did I miss something in the article that said it's either our system or the US system? There are other options; it's not an either or situation. To suggest our healthcare system is without significant problems is startling.
We have deplorable wait times, are lacking in doctors and do not have the same access to cutting edge medical technologies due to lack of funds.
I would suggest that any first world nation should be embarrassed that anyone would go without medical care, however we also need to take a serious look at what's wrong with our system and look to shift to another model. Specifically a hybrid healthcare model such as is seen in various European countries. As our population continues to age, how exactly does everyone here think our system will continue to be funded?
There is a large population base in Canada that travels out of country for healthcare (specifically to the Mayo Clinic and other high profile establishments). Would it not make more sense to develop a system that keeps those dollars AND doctors in Canada?
Posted by: Donna | Jul 30, 2021 6:18:42 PM
Here here Joe!
Posted by: Daniel | Jul 30, 2021 6:22:35 PM
As a fellow Canadian who makes a decent living there is no place I would rather be than in Canada with our Healthcare system.
We have a system that you will not have to declare bankruptcy because of a healthcare issue. You have a heart attack, stroke, cancer...you will not have to pay the hospital for your stay. For many in the USA this would force many to sell their home and lose everything.
Thank you to my fellow Canadians for paying what you do in taxes like I have for so many years. I appreciate your support more than ever when I now have to use our system knowing that I won't need a 2nd or 3rd mortgage on my home to pay for my hospital bills.
Posted by: George Smith | Jul 30, 2021 6:33:18 PM
IF EQUAL HEALTHCARE IS UNIVESAL TO ALL IN CANADA, WHY DO SPORTS CELEBRITIES JUMP TO THE TOP OF THE LIST FOR M.R.I.'s AND OTHER DIAGNOSTIC IMAGING?
TRUST ME, I AM A CANCER SURVIVOR. I KNOW FOR A FACT EVERYONE IS NOT TREATED EQUAL. IF YOU KNOW SOMEONE IN THE MEDICAL FIELD, WHO KNOWS ANOTHER (YOU GET MY DRIFT) YOU GET BUMPED TO THE FRONT.
I KNOW. I AM ONE OF THOSE FORTUNATE PEOPLE.
Posted by: HJM | Jul 30, 2021 6:35:54 PM
I think everyone knows the healthcare is not free. What we really need to do is review our system very closely and see how much of the money is actually spent on the care that the average taxpayer receives and the amount spent on administration. Almost every hospital has a full floor devoted to housing administrators. This doesn't even include all the other office space in locations occupied by Regional Hospital Authorities in BC. We are constantly told that the money is tight and our system is not sustainable, yet upper managers and administrators can find the money to give themselves wage increases as high in some cases as 25% plus benefits and perks that the average Canadian will never see. Our system is not perfect but it could be a lot better if the funds were directed where they would do the most good; front line care and not backroom politics and paper pushers.
Posted by: Terry in Vancouver | Jul 30, 2021 6:36:38 PM
I know health care isn't free, and I have an economics/business degree. but here's what happened to me recently. About a week ago I started vomiting blood. Having never called 911 in my 50 years I thought it a good idea to do so. An ambulance came, yup it was blood. They take me to the hospital and immediately check al vitals. I continue to throw up more blood, and they give me a blood transfusion. Next day they operate on me, and banded the varacies veins that needed banding, and put me in a ward with 3 others.
Each day, an RN is assigned to me the entire time, Naturally they aren't the same because each only works x amount of hours a day. My family doctors sees me twice, and the specialist who performed the operation saw me twice. Because my blood level continued to be low they recommended I stay a couple of extra days for monitoring. I was feed, blankets and medicine provided, etc.
Don't know the cost of this, but I'm damn glad I don't cause I'm sure if I were in the US without insurance it would have been in the 10's of thousands of dollars. Turns out I'm going to need a liver transplant too, can only imagine the financial impact that this would have had had I not been living here.
Posted by: Bessie MccLaughlin | Jul 30, 2021 6:42:04 PM
After spending time in Florida in the winters and hearing what the seniors there have to pay for healthcare and how they have to wait for approval from an insurance company for procedures I will gladly pay the sales tax here in Canada when it means we get surgeries that would cost tens of thousands of dollars stateside.
We are very fortunate with our healthcare system in Canada and should thank God for it.
Posted by: Glen Inscho | Jul 30, 2021 6:46:58 PM
Of course we pay for health care, nothing is free in this world. I will gladly pay my share of taxes if all Canadians have equal access to health care. Yes, the system in the US is great if you have insurance but not so great if you don't. Like a past president of the American Medical Association said, " America has the finest medical system in the world, if you can afford it." Proud of our health care system even with its shortcomings.
Posted by: Terry in Vancouver | Jul 30, 2021 6:53:55 PM
To HJM, and George Smith,
I agree that there is certainly abuse in the system. My wife just started working in heath care and she frequently tells me about people phoning in sick, only to work at double time somewhere else etc. It's damn near epidemic in some areas. but as to how gets what when, generally speaking if we're talking about life or death, the guy who's going to get the kidney transplant isn't the brother of the surgeon.
They have a committee who determines who most needs it, based on whether or not they are likely to survive the process and the likelihood they'll live many years in the future (ie a 40 year old will get priority over an 85 year old) etc.
Proponents against ObamaCare like to label these "death panels", and pretend that the insurance companies operate any differently.
Posted by: Paul | Jul 30, 2021 6:58:18 PM
Seriously???? It seems like a LOT of the comments on this post are people that have never had to experience the Alberta Health Care system for anything other than life threatening illness. 20 yrs ago... we had a health care system. We also paid premiums. At that time, we had all types of health care paid for through our contributions. Not just the basics. Now annual eye exams are no longer covered. Podiatry is not covered (according to Dr.s in the field it is only covered when the threat of the loss of a limb becomes a reality). I became familiar with our terribly eroded form of health care over a yr ago when I suffered an injury to my back. I was unable to walk or stand (prolapsed/slipped disk). I was informed that the only treatment was physio therapy (which Alberta Health Care no longer covers) and since I was unemployed and looking for a job, this was not an option. For that matter, looking for a job was not an option since I was unable to walk for a month and a half, in agony and laying on a floor where I experienced some relief from the pain. I went to a clinic which was meant for emergency situations and spent 5 hours laying on the floor of a WAITING ROOM before a Dr. came to see me and informed me there was nothing they could do other than schedule an MRI and I would have to wait 6 months. Considering the prognosis was that 6 weeks of rest would see my back heal on it's own, this was also a ridiculous prospect. I quickly became aware that unless I was in emergency with a gun shot wound or an arrow in my chest, Alberta Health Care would do nothing for me. As a matter of fact I know several people that have suggested that the only way to get immediate treatment is to wait until a problem is severe enough to call an ambulance and foot whatever the bill for ambulance charges are in order to go to the front of the line. There are private MRI clinics here where the wealthy can get immediate testing as well as all the "extras" that have since been stripped away from health care during the privatization years of Ralph Klein. Health Care in Alberta??? Perhaps 20 years ago. Currently the only illnesses that are covered for people unable to afford private insurance are life threatening situations or those easily treated with prescriptions provided by the equally corrupt drug companies. Illnesses centered around pain, mobility, eye sight etc are treated as non life threatening and are no longer covered. As far as Alberta Health Services and the elderly go, let's not open THAT can of worms. After viewing over a million documents in my line of work, regarding how we treat our senior citizens, I am thankful that I am not in that boat yet!
Posted by: Sue | Jul 30, 2021 7:02:46 PM
British Columbia is different from the rest of Canada. They actually do pay out of pocket to see a doctor. Some employers pay it but if not than it comes out of their own pocket. That makes it incredibly hard for people with lower incomes. BC is the only province in Canada to do this and it isn't working. People have been turned away from seeing their doctors because they were behind in their payments. BC=Bring Cash
Posted by: mayanne | Jul 30, 2021 7:03:31 PM
I agree with Canada's universal health care as it's available to all, however in addition to taxes, in BC we pay a head tax (MSP) of $133.00 family of 3, 66.50 single after tax $'s, a flat rate, same amount for all income earners, so millionnare pays same as $30,000 earner. Rates have increased over 100% in past 8 yrs, to increase again 2014 by 4%. Former BC Liberal premier Campbell visited European countries with his entourage for ways to improve healthcare, a taxpayer holiday I think since nothing every came of this visit. Also BC liberal government keeps padding their pocketbook with each increase as they pay NO MSP fees. I agree with Canada universal health care, but the cost should be an equal percentage for all, not inequity in BC where borderline poor families pay the same as the rich, and I do believe the BC premier & her government friends should pay their own share.
Posted by: Sue | Jul 30, 2021 7:07:40 PM
British Columbia is different from the rest of Canada. They actually do pay out of pocket to see a doctor. Some employers pay it but if not than it comes out of their own pocket. That makes it incredibly hard for people with lower incomes. BC is the only province in Canada to do this and it isn't working. People have been turned away from seeing their doctors because they were behind in their payments. BC=Bring Cash
Posted by: Gordon Adams | Jul 30, 2021 7:09:13 PM
I to live in B.C. too. Our medical system has saved my life as I had Cancer. If it were not the B.C.cancer clinic & the Doctors there, I would not be alive. So what if we have to pay monthly premiums as well as our taxes, we get some of the best care in Canada for peanuts. Canada is one of the Best Countries in the World so quit wining & enjoy this country for what it is "Great".
Posted by: JD | Jul 30, 2021 7:29:57 PM
BC is NOT the only province to have premiums for health care. Ontario has it for people making over a certain taxable income (up to $900 a year), Quebec has it, and until 2009, Alberta had it. I inquired about health care in the US, in the Las Vegas area, and for private, non group health care coverage, I was quoted between $3600 and $7500 per year for insurance, depending on deductibles I wanted to pay. All of the plans covered dental, physio, and optical, and hospital visits, some things which under Canadian health care you'd need to have an extended benefits package to obtain. I have the extended health care deducted from my pay at work, and last year, as a single person, I paid about $5500 for my health care. Just about what I would pay in the States for a similar plan. As other people have mentioned, the US is not the only country we need to compare health care systems with, there are many European health care systems which Canadians could learn a lot from. As an aside, it's been my experience that not all Canadians are aware they are paying for health care. I have cousins in Ontario who, since they don't pay premiums, claim that health care in Canada is free. I constantly have to point out that it's only free at point of service. We pay handsomely for our "free" health care.
Posted by: Homer | Jul 30, 2021 7:35:23 PM
Health Care is a sacred cow in Canada and that's the way it should be.
Posted by: Curt | Jul 30, 2021 7:43:58 PM
nice propaganda piece Fraser Institute. Canadians are sure to fall for it
Posted by: Bob | Jul 30, 2021 7:46:08 PM
Yes but what our we really getting? For all your tax money.
I once was earning 125,000$ but now 36,000. So I will take all the healthcare they can muster.
Posted by: Craig | Jul 30, 2021 7:46:12 PM
The Canadian healthcare system is great as long as you don't get really sick. If you know anything about the medical profession and have experienced 'Canadian healthcare', you will realize just how many people get killed by substandard care in Canada. Many of my colleagues are physicians, and those that can afford it bring the people they care about to the States when they get really sick. Those that tout the system are either blindly 'nationalistic' (thinking that blind patriotism is what makes Canada great?), are ignorant with respect to the health profession, simply have never been deathly sick or has had someone they care about deathly sick, or have not experienced receiving healthcare at a top rate American hospital and are just speaking out of ignorance. Oh, of course, I can't knock all the doctors and hospitals in Canada; there are always good ones, but the system doesn't promote or reward good behaviour. I'll leave you with one thought: If a doctor gets paid $35 per visit and is allowed to see 50 patients a day, they could make $1,750 max a day. A doctor with kids at home or a high level hobby (universities such as UBC encourage 'well-rounded' applicants, especially athletes, to weed out the majority of applicants which are smart Asian students, so they end up with photographers, musicians, explorers, etc.) can see bandage-type cases only for 5 minutes each (believe me, I've seen 2 minutes), and get through their day in less than 5 hours. On the other hand, doctors that truly care, will take 30, even 45 minutes with complex patients, to find the root cause of the problem and talk about prevention, and be able to only see fewer than 20 patients a day, making only a quarter of their counterparts ($80 an hour vs $350 an hour). Who in Canada would want to be a good doctor, even if they are a good person? At least in the States, if you suck, you will lose patients, or worse, be sued. Here in Canada, there is a doctor shortage and many can't find a doctor. A doctor can kill patients due to recklessness, and nothing will come of it; they will keep their license and they will continue to make loads of money, as we are not a litigious society, which many Canadians are proud of. Here in Canada, one does not criticize or complain about their doctor or the medical system, because Canadians want to believe that is one of their key national characteristics. Unfortunately, blind nationalism... there is another term for it, 'fascism'. I welcome articles such as this that promote critical review of our nation. Canadians who believe critiquing Canada's systems and traditions, whether good or bad is a sign of treachery, are the ones who are missing out on the point of what supposedly makes Canada great: Humbleness and introspection.
Posted by: SP | Jul 30, 2021 7:48:40 PM
Perhaps we should compare what the British/Germans pay for their healthcare compared to Americans and then compare average number of healthy days of life.
To any moron suggesting full privatization I suggest you think of what happens when someone without health coverage but with a highly contageous disease comes in contact with your child who is to young to have been vaccinated yet.
There is a reason why people leave Zimbabwe for the west. The 'free market' useful idiots would point to Robert Mugabe's Palace and healthcare which is is better than Queen Elisabeths (it is)and say 'the average person in Zimbabwe just needs to 'work harder'.
A rigged system is a rigged system, and dismanteling Canadian Healthcare just to keep the American Koch Brothers happy will not lead to a better outcome for Canada... or the US.
Posted by: stamper | Jul 30, 2021 7:57:37 PM
Of course it isn't free. Don't you think we know that? The point is that we pay according to our ability and it isn't denied to anyone. Not only that, when a catastrophic illness strikes, no one asks you to sign over your life's savings before they deliver treatment. Unfortunately, our system is at risk due to the downloading of costs to the Provinces and lure of huge profits in a two tier system advocated by right wing organizations like the Fraser Institute.
Posted by: ONT MD | Jul 30, 2021 8:12:56 PM
I am a GP who quit OHIP ten years ago as government controll became unbearable. As an insider I can tell you Physicians are paranoid of the College of Physicians & Surgeon who are bastards and MOHLTC audits that can bankrupt you. Unless you toe the line like good little socialists you are screwed. Do as little as possible as cheaply as possible. Recently my wife had to go to the Cleveland Clinic to get proper care. The wait in Ontario to see the specialist was one year. In Cleveland she was seen within 72 hours. She would have been dead by the time she would have beeen seen in Ontario.
The people in Canada are deluded and brainwashed when it comes to health care.
Posted by: Bryan | Jul 30, 2021 8:34:30 PM
Nothing in life is free, the system is designed to provide the widest coverage possible. Should we continue to challenge waste in the system. Yes! But If people don't believe that health care is a human right ,then I guess they want to live in a world where you health care is treated like buying a car. The more money you have the bigger and better you can drive. I believe we have evolved past this thinking.
Posted by: Jay | Jul 30, 2021 8:43:46 PM
I am so happy we don't live in that train wreck called the U.S.A co. We have a great health care system here in Canada and proud of it like the many comments I have read!!! As to the cost there is probably huge mismanagement or misplacement,(LOL) of the tax money. Its like drivers we send 10 BILLION to Ottawa and we get 3 BILLION back. So when we need more money they tax us a little more but withy some Vaseline!!!!!!!!! So Sad, when we hire these people to work for us that's what we get in return!!!!!!
Posted by: Keith | Jul 30, 2021 8:56:53 PM
Just one large operation in our life. The cost , nothing. I'll take that !! I'm glad to be CANADIAN !!!