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Under
Budget Pressure, Canada Slowly Rethinks Health Care Model
By: Tabassum
Rahmani
Publisher: The Heartland Institute 07/12/2010
In
response to pressure from budget problems, Canada and its
provinces are rethinking their national health care model as they
seek to curb healthcare costs without demolishing the
justifications for the state-funded system.
According
to Devon Herrick, a senior fellow at the National Center for
Policy Analysis in Dallas, Texas, the problems now facing Canada
already affect other countries.
"Canada
is facing the same problems as other developed countries with
socialized health care systems," Herrick said. "There
are never enough resources to provide care for all who demand it,
and tax hikes are unpopular. Today, Canada is forced to
increasingly rely on the private sector to boost access to
care."
Cost
Controls Have Failed
Health
care in Canada is delivered through a publicly funded system, with
a pricetag of roughly $183 billion in Canadian dollars ($174
billion U.S.) for FY 2009. A temporary spending fix to fill
current funding gaps ends in 2013 and is unlikely to be extended.
Canada's
system has not restrained the rising costs of health care, such as
salaries for top hospital executives and doctors and spiraling
costs for new medical technologies and drugs.
One
province, Ontario, recently conducted an analysis which found
health care costs could eat up 70 percent of its budget by 2022.
Legislation has been introduced to tie hospital executive pay to
the quality of patient care, and the province is considering
saving money by putting more physicians on lower salaries. . .
‘Raise
Taxes, Ration Access'
Brett
Skinner, president of the Fraser Institute, a Canadian think tank,
says Canada's national and provincial governments have been
avoiding real reform.
"Canada
is a federal state. The provincial governments have autonomous
constitutional jurisdiction over health policy, and the national
government intervenes extra-constitutionally by offering federal
transfer payments to support health care systems in the Provinces,
on the condition that they comply with the Canada Health
Act," Skinner said.
Skinner
says the provinces generally comply to avoid losing the government
funding, but he maintains they have the constitutional
jurisdiction to privatize health insurance if they choose.
"Canada
has not announced any formal intentions to reassess the health
model it imposes on the provinces, nor are the provinces formally
reassessing their provincial health models," Skinner said.
"Reform is incremental and reactionary, and continues to be
characterized by a ‘pay more, get less' approach—which
translates to ‘raise taxes, ration access.'"
Tabassum
Rahmani (trahmani74@yahoo.com)
writes from Dublin, California.
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--Canadian
Supreme Court Decision 2005 SCC 35, [2005] 1 S.C.R. 791
http://scc.lexum.umontreal.ca/en/2005/2005scc35/2005scc35.html
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