The American Left wing held up the Canadian health care system as a role model for Obama care; now Canada’s provincial governments looking for ways to cut cost for its national health care programs. From Reuters via Yahoo News:
Pressured by an aging population and the need to rein in budget deficits, Canada’s provinces are taking tough measures to curb healthcare costs, a trend that could erode the principles of the popular state-funded system.
Ontario and drug makers are going head to head to cut the price of medicines in half.
In British Columbia, provincial leaders are eliminating block grants in favor a fee for medical procedures.
While in Quebec, the government is instituting a health care flat tax and considering a payment for doctor visits.
Canada is expecting it’s senior population to grow to 25% of the total population by 2036, costs will explode.
“There’s got to be some change to the status quo whether it happens in three years or 10 years,” said Derek Burleton, senior economist at Toronto-Dominion Bank.
“We can’t continually see health spending growing above and beyond the growth rate in the economy because, at some point, it means crowding out of all the other government services.
“At some stage we’re going to hit a breaking point.”
It’s expected that health care cost will exceed 40% provincial government budgets:
Healthcare in Canada is delivered through a publicly funded system, which covers all “medically necessary” hospital and physician care and curbs the role of private medicine. It ate up about 40 percent of provincial budgets, or some C$183 billion ($174 billion) last year.
Spending has been rising 6 percent a year under a deal that added C$41.3 billion of federal funding over 10 years.
But that deal ends in 2013, and the federal government is unlikely to be as generous in future, especially for one-off projects.
Ottawa looks to reduce budget deficits the federal government is expected to reduce medical one-off projects.
“As Ottawa looks to repair its budget balance … one could see these one-time allocations to specific health projects might be curtailed,” said Mary Webb, senior economist at Scotia Capital.
Provincial governments are looking new money sources:
Brian Golden, a professor at University of Toronto’s Rotman School of Business, said provinces are weighing new sources of funding, including “means-testing” and moving toward evidence-based and pay-for-performance models.
“Why are we paying more or the same for cataract surgery when it costs substantially less today than it did 10 years ago? There’s going to be a finer look at what we’re paying for and, more importantly, what we’re getting for it,” he said.
Health care will take up 70% of the provincial budget of Ontario by 2022 with reform:
“Our objective is to preserve the quality healthcare system we have and indeed to enhance it. But there are difficult decisions ahead and we will continue to make them,” Ontario Finance Minister Dwight Duncan told Reuters.
The province has introduced legislation that ties hospital chief executive pay with the quality of patient care and says it wants to put more physicians on salary to save money.
In a report released last week, TD Bank said Ontario should consider other proposals to help cut costs, including scaling back drug coverage for affluent seniors and paying doctors according to quality and efficiency of care.
Reuters via Yahoo News has the rest of the story.
Thanks Congress, lefties and President Obama this is what were are looking forward to health care future in America. Boy you guys are a bunch of morons.