B.C. Premier-elect John Horgan listens during a post-election news conference, in Vancouver, on Sunday, October 25, 2020. THE CANADIAN PRESS/Darryl Dyck

B.C. Premier-elect John Horgan listens during a post-election news conference, in Vancouver, on Sunday, October 25, 2020. THE CANADIAN PRESS/Darryl Dyck

Premiers’ demands for long-term health funding increase takes back seat to pandemic

The federal government this year will transfer to the provinces nearly $42 billion for health care

A first ministers meeting today that was supposed to be devoted to long-term, federal health care funding seems destined to be hijacked by a more urgent priority: surviving the COVID-19 pandemic.

Premiers asked for the meeting in September and wanted it focused exclusively on their unanimous demand that Ottawa add at least $28 billion a year to its annual health transfer payment to provinces and territories.

But while Prime Minister Justin Trudeau says he’s willing to discuss the issue, he has been clear that getting through the pandemic is more pressing, as far as he’s concerned.

As host of the daylong meeting, he’s scheduled the first half to focus on the rollout of vaccines to inoculate Canadians against COVID-19, the first of which is slated to begin delivery next week.

The second half of the meeting, to be conducted via teleconference, will be devoted to health care funding and improving health care in general.

On Wednesday, premiers were scaling back expectations, saying it will take multiple meetings to come to any resolution on health transfers.

Ontario’s Doug Ford is hoping to persuade Trudeau to commit to a resolution in time for increased funding to be included in the next federal budget.

The premiers’ demand for more health care cash comes as the federal government is facing an unprecedented deficit approaching $400 billion, with more billions yet to be doled out to help Canadians weather the pandemic and the shattered economy to eventually bounce back.

So premiers can hardly be surprised that Trudeau doesn’t seem in any rush to deal with their decades-long complaint that Ottawa is not paying its fair share of annual health care costs.

The federal government this year will transfer to the provinces nearly $42 billion for health care, under an arrangement that sees the transfer increase by at least three per cent each year.

But the premiers contend that amounts to only 22 per cent of the actual cost of delivering health care and doesn’t keep pace with yearly cost increases of about six per cent.

They want Ottawa to increase its share to 35 per cent and maintain it at that level, which would mean an added $28 billion this year, rising by roughly another $4 billion in each subsequent year.

In calculating the federal share, the premiers include only the cash transfers they get from Ottawa. They do not include the billions in tax transfers they also get — essentially tax room vacated by the feds so that provinces and territories can increase their taxes to help pay for health care.

In a 2008 report, the auditor general of Canada pegged the value of the tax transfer for health care at $12.6 billion.

Nor do the premiers include any of the money the federal government has transferred to them specifically to combat the COVID-19 health crisis.

On top of the annual transfer this year, the federal government has given the provinces an extra $19 billion to help them cope with the fallout from the pandemic, including more than $10 billion specifically for pandemic-related health-care costs.

Finance Minister Chrystia Freeland promised $1 billion more for long-term care homes, which have been hardest hit by the pandemic, in her fiscal update last month.

The federal government has also spent billions purchasing personal protective equipment, rapid testing kits and lining up purchases of potential vaccine candidates.

Trudeau has noted repeatedly that Ottawa has footed the bill for 80 per cent of all the money spent by governments in Canada to fight COVID-19.

But the premiers say all that extra money is one-off; what they need is an increase in annual health transfers to ensure stable, predictable, long-term funding.

Joan Bryden, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

CoronavirusHealthcare

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Amanda Parsons, a registered nurse on staff at the Northwood Care facility, administers a dose of the Moderna vaccine to Ann Hicks, 77, in Halifax on Monday, Jan. 11, 2021. THE CANADIAN PRESS/Andrew Vaughan-Pool
61 new COVID-19 cases, two more deaths in Interior Health

Twenty-nine people are in hospital, seven of whom are in intensive care

Ladybug Landing Child Care Centre in Salmon Arm remains open as one person who was at the facility tested positive for COVID-19. (Lachlan Labere/Salmon Arm Observer)
Salmon Arm daycare owner upset by rumours related to positive COVID-19 test

Ladybug Landing’s Leigh-Anne Chapman impressed by response from Interior Health

Police are seeking further witnesses after an elderly woman who was struck by a vehicle in Salmon Arm succumbed to her injuries. (File Photo)
Salmon Arm pedestrian dies after being hit by truck along Highway 1

Collision took place on Jan. 15 in downtown Salmon Arm, police looking for witnesses

Responding to recent cases of COVID-19 confirmed at Shuswap schools, School District 83 Superintendent Peter Jory has asked staff and the public to be vigilant when it comes to the practice of good behaviours that help prevent the virus’ spread. (File photo)
COVID-19: North Okanagan-Shuswap school communities asked be vigilant

Superintendent Peter Jory responds to increasing COVID-19 numbers at schools.

In a Jan. 18 notice, Interior Health and Salmon Arm West Elementary confirmed a member of the school community tested positive for COVID-19 and, due to a possible transmission, advised students who ride School District 83's Monkey Bus be monitored for symptoms of the virus. (Lachlan Labere-Salmon Arm Observer)
COVID-19 case reported at Salmon Arm West Elementary

Interior Health advises students who ride Monkey Bus be monitored for symptoms

Syringe is prepared with one of B.C.’s first vials of Pfizer vaccine to prevent COVID-19, Victoria, Dec. 22, 2020. (B.C. government)
B.C.’s COVID-19 caseload stays steady with 465 more Tuesday

No new outbreaks in health care facilities, 12 more deaths

(Stock photo)
EDITORIAL: COVID-19 restrictions continue to affect us all

Canada has recorded more than 700,000 confirmed cases of pandemic

A couple living at the Summerland Waterfront Resort is trying to sell their unit because of strata changes which will require them to pay significantly higher strata fees or have their unit included in the resort’s rental pool (John Arendt - Summerland Review)
Couple living at Summerland resort facing increases

Permanent residents of Summerland Waterfront Resort told fees will more than double

(Big White Ski Resort)
28 more cases of COVID-19 linked to Big White cluster

More than 200 cases have been identified since the cluster was announced

A cow moose wanders around the Silver Star Elementary School neighbourhood Tuesday, Jan. 19. (Contributed)
Moose chases two people near North Okanagan school

Conservation and dog control attending to the situation

The sale of the Kirschner Mountain Development for $22M marks the largest in Realtor history, in the Okanagan. (Contributed)
Kelowna mountain development sold for $22M

The sale of the 640-acre Kirschner Mountain development has made the history books

New Westminster TV production designer, Rick Whitfield, has designed an office in a box for British Columbians in need of a private workspace. (BC Box Office photo)
PHOTOS: B.C. man designs ‘box office’ solution for those working from home

‘A professionally designed workspace on your property, away from the distractions of home’

Chilliwack ER doctor Marc Greidanus is featured in a video, published Jan. 18, 2021, where he demonstrates and describes effectiveness of various styles of masks. (Youtube)
VIDEO: Emergency room doctor runs through pros and cons of various masks

‘We’ve been asked to wear a mask and it’s not that hard,’ Greidanus says.

(Pixabay photo)
VIDEO: Tip to Metro Vancouver transit police helps woman 4,000 km away in Ohio

Sgt. Clint Hampton says transit police were alerted to a YouTube video of the woman in mental distress

Most Read