Report on ‘true cost’ of health care for Canadians
Report on ‘true cost’ of health care for Canadians | Insurance Business Canada
Life & Health
Report on ‘true cost’ of health care for Canadians
New study sheds light on the eye-catching numbers
Life & Health
By
Terry Gangcuangco
If your clients question the costs of private health care insurance, then you might wish to point out just how much Canada’s public health care system is costing them – even if it’s supposed to be “free”.
A new study by the Fraser Institute reveals that a typical Canadian family of four is set to pay approximately $17,713 for public health care insurance in 2024. The report, published by the independent public policy think-tank, highlights the often-overlooked cost of public health care funded through various taxes.
In a release, the Fraser Institute said: “Most Canadians are unaware of the true cost of health care because they never see a bill for medical services, may only be aware of partial costs collected via employer health taxes and contributions (in provinces that impose them), and because general government revenue – not a dedicated tax – funds Canada’s public health care system.”
For 2024, the study estimates that a family of four with an average household income of $176,266 will contribute $17,713 toward public health care. Couples without children will pay about $16,528; single individuals are expected to shell out $5,629; and single parents with one child are poised to face costs worth $5,345.
The think-thank noted that since data first became available in 1997, the cost of public health care for the average Canadian family has surged, outpacing the growth in income. Specifically, public health care costs have risen 2.2 times faster than food prices, 1.6 times quicker than housing costs, and 1.7 times faster than the average income.
Esmail emphasized the importance of understanding these costs: “Understanding how much Canadians actually pay for health care, and how much that amount has increased over time, is an important first step for taxpayers to assess the value and performance of the health care system, and whether it’s financially sustainable.”
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