Ottawa’s apparent intent to take a hands-off approach to the 2014 health accord has escalated concerns since the federal Conservative government announced it will cut health-care transfers to the provinces.
While the premiers have been seeking further negotiations with the federal government on the terms of the deal, Prime Minister Stephen Harper has remained adamant the provinces will get no additional money for health care from his government.
Due to the higher costs of an aging population, the new per-capita health-care plan will reduce British Columbia’s funding beginning in 2014, estimated to cost the province $256 million a year.
By 2018, the health transfers will be based on economic expansion, including inflation, beyond a three per cent baseline.
Cariboo-Chilcotin MLA Donna Barnett says Premier Christy Clark “agrees” the nominal GDP (gross domestic product) should be used to set the annual rate increase, but also believes the formulas need to be adjusted to reflect B.C.’s growing number of seniors.
Meeting in Victoria recently, the first ministers discussed how to respond to the federal government’s reductions in health-care transfers.
“The 13 premiers agreed that the unilateral process used by the federal government to determine federal funding for health care was unprecedented and unacceptable,” explains Barnett.
“The premiers agreed, apparently, that there needs to be dialogue on the funding formula by all national leaders.”
After the meetings, the premiers announced a new Health Care Innovation Working Group, co-chaired by Prince Edward Island Premier Robert Ghiz and Saskatchewan Premier Brad Wall, will pursue ways to meet the provinces’ health challenges.
The group will seek ways to meet new challenges in the health-care systems, including the needs of seniors, patients with chronic diseases and northern populations.
Barnett notes that from her own viewpoint, the formula for health transfers should consider geographic and accessibility factors, as well as multiculturalism, in addition to aging population demographics.
If considering geographic locations can provide more home support, not only is the patient’s lifestyle much better, it can save money, she adds.
“In the costs of home support versus building residential and long-term care facilities, there’s no comparison.”
The Health Care Innovation Working Group will report on its progress at the July 2012 Council of the Federation annual meeting in Halifax.
