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

Latest COVID-19 numbers in Cranbrook and surrounding regions.
Cranbrook sees five COVID-19 cases in first week of January

To date, there have been nearly 230 cases reported in the East Kootenay region

(Courtesy photo)
SD5 joins teachers in calling for end to FSAs

School District 5 has sent a letter to the Ministry of Education to replace FSAs with alternate testing

Cranbrook Search and Rescue safely and effectively rescued an injured snowmobiler on January 16. Pictured are six members took part in a Avalanche Skills Training Level 1 course, which also took place on the 16th. Members are required to have at minimum AST1 for winter responses. (Facebook/Cranbrook SAR file)
Cranbrook SAR rescues injured snowmobiler from Lumberton area

A helicopter crew assisted in safely and quickly located the injured person

City hall. Black Press file photo.
OPINION: Cranbrook needs a homeless shelter

Whether at 209 16th Ave. N or in another location, the city is in desperate need of a year-round shelter

A juvenile sturgeon in a B.C. rearing facility. The wild population in the Upper Columbia is estimated at 1,100 individuals, enhanced with roughly 5,500 hatchery fish. (file photo)
B.C.’s Upper Columbia sturgeon endure long battle with local extinction

Decades of monitoring and intervention is ongoing to save the prehistoric fish

A scene from “Canada and the Gulf War: In their own words,” a video by The Memory Project, a program of Historica Canada, is shown in this undated illustration. THE CANADIAN PRESS/HO - Historica Canada
New video marks Canada’s contributions to first Gulf War on 30th anniversary

Veterans Affairs Canada says around 4,500 Canadian military personnel served during the war

Gin, one of the Kantymirs’ two sheep. (Martha Wickett-Salmon Arm Observer)
Sheep start up ATV, sit in cars and go for walks in Salmon Arm

Until they bought two sheep, Ken and Karleen Kantymir didin’t realize just how social the animals are

Heather Lucier, a pastor at Kelowna Harvest Fellowship, speaks to an RCMP officer outside of Harvest Ministries on Sunday, Jan. 10. (Michael Rodriguez - Capital News)
Kelowna church fined 2nd time for violating public health order

Harvest Ministries in Kelowna has previously said they will fight the tickets in court

Powell River-Sunshine Coast MLA Nicholas Simons was appointed to the NDP cabinet as minister of social development and poverty reduction after the October 2020 B.C. election. (Hansard TV)
B.C. job training fund increased for developmentally disabled

COVID-19 has affected 1,100 ‘precariously employed’ people

The Ginkgo Biloba is the only surviving species of the Ginkgoales. Photo: pixabay.com
Cranbrook man hoping to bring 200 million-year-old trees to Creston

The Ginkgo Biloba is the only surviving species of the Ginkgoales, and Dan Hicks has been on a mission since last summer to bring them back to this side of Canada.

B.C. driver’s licence and identity cards incorporate medical services, but the passport option for land crossings is being phased out. (B.C. government)
B.C. abandons border ID cards built into driver’s licence

$35 option costing ICBC millions as demand dwindles

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

sdf
2nd in-school violence incident in Mission, B.C, ends in arrest

RCMP notified of local Instagram page with videos (now deleted) showing student assaults, bullying

Most Read