Canada’s health care overhaul will cost $1.4 trillion
Posted On July 24, 2021
Canada’s government said Friday it plans to spend $1,400 billion on health care and social care in the coming years as it attempts to bring down costs for Canadians.
The new plan is a big bet on cutting out the middleman and replacing it with a system that would be run by the private sector.
The $1 billion figure was a result of a $100 million pilot project by the Canadian Federation of Independent Business, which had already started to put together plans for health care in Canada.
The federal government will spend $800 million on health, and $300 million on social care over the next three years.
The Canadian Press reports the government is also committing to making universal child care available to all families.
The move is a major step forward for the government, which has struggled to deliver a universal program in Canada since it took office in 2006.
The government also is committed to reducing Canada’s dependency on foreign aid and the Canadian pension system, which provides health care to more than 70 per cent of Canadians.
Health Minister Jane Philpott said in a statement that this new plan will help ensure Canada is on track to meet the 2020 target to reduce spending on health by about $1 trillion by 2030.
Canada’s healthcare system was supposed to be on track for the largest cuts in spending in the history of the country by 2020, with spending cut to more a billion dollars.
But a major chunk of that will come from a reduction in the amount of health care services Canadians get.
The cuts have been expected since the Liberals won the election last month.
The Trudeau government promised to cut the government’s spending by $1-trillion over the coming decade, and to reduce the size of the federal government to a third of its size in 2020, from its current size of about 35 per cent.
It will also spend $5 billion on the Canada Health Act, which governs health care for the provinces and territories, and also spend another $1 million on the Canadian Pension Plan Investment Board.