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Health Care in Canada
Health Care in Canada
Canada's health care system is a group of socialized health insurance plans that provides coverage to all Canadian citizens. It is publicly funded and administered on a provincial or territorial basis, within guidelines set by the federal government. Under the health care system, individual citizens are provided preventative care and medical treatments from primary care physicians as well as access to hospitals, dental surgery and additional medical services. With a few exceptions, all citizens qualify for health coverage regardless of medical history, personal income, or standard of living. Canada's health care system is the subject of much political controversy and debate in the country. Some question the efficiencies of the current system to deliver treatments in a timely fashion, and advocate adopting a private system similar to the United States. Conversely, there are worries that privatization would lead to inequalities in the health system with only the wealthy being able to afford certain treatments. Regardless of the political debate, Canada does boast one of the highest life expectancies (about 80 years) and lowest infant morality rates of industrialized countries, which many attribute to Canada's health care system. Health care in Canada is delivered through a publicly-funded health care system, which is mostly free at the point of use and has most services provided by private entities. It is guided by the provisions of the Canada Health Act. The government assures the quality of care through federal standards. The government does not participate in day-to-day care or collect any information about an individual's health, which remains confidential between a person and his or her physician. Canada's provincially based Medicare systems are cost-effective partly because of their administrative simplicity. In each province each doctor handles the insurance claim against the provincial insurer. There is no need for the person who accesses health care to be involved in billing and reclaim. Private insurance is only a minimal part of the overall health care system. Competitive practices such as advertising are kept to a minimum, thus maximizing the percentage of revenues that go directly towards care. In general, costs are paid through funding from income taxes, although three provinces also impose a fixed monthly premium which may be waived or reduced for those on low incomes. There are no deductibles on basic health care and co-pays are extremely low or non-existent (supplemental insurance such as Fair Pharmacies may have deductibles, depending on income). A health card is issued by the Provincial Ministry of Health to each individual who enrolls for the program and everyone receives the same level of care. There is no need for a variety of plans because virtually all essential basic care is covered, including maternity and infertility problems. Depending on the province, dental and vision care may not be covered but are often insured by employers through private companies. In some provinces, private supplemental plans are available for those who desire private rooms if they are hospitalized. Cosmetic surgery and some forms of elective surgery are not considered essential care and are generally not covered. These can be paid out-of-pocket or through private insurers.
Health coverage is not affected by loss or change of jobs, as long as premiums are up to date, and there are no lifetime limits or exclusions for pre-existing conditions. Pharmaceutical medications are covered by public funds for the elderly or indigent or through employment-based private insurance. Drug prices are negotiated with suppliers by the federal government to control costs. Family physicians are chosen by individuals. If a patient wishes to see a specialist or is counseled to see a specialist, a referral can be made by a GP. Preventive care and early detection are considered important and yearly checkups are encouraged. Early detection not only extends life expectancy and quality of life, but cuts down overall costs. Those suspected of abusing the system by over-frequent or frivolous use can be tracked by the doctor through the ID on their health insurance card and may have to wait longer than those with more urgent needs.
The amount Canadians spend on health care in 1997 dollars has increased every year between 1975 and 2009 from $39.7 billion to $137.3 billion or a more than doubling of per capita spending from $1,715 to $4089. In 2009 dollars spending is expected to reach $183.1 billion (a more than five percent increase over the previous year) or $5,452 per person. Most of this increase in health care costs has been covered by public funds. The greatest proportion of this money goes to hospitals ($51B), followed by pharmaceuticals ($30B), and physicians ($26B). Total spending in 2007 was equivalent to 10.1% of the gross domestic product which was slightly above the average for OECD countries, and below the 16.0% of GDP spent on health care in the United States. The proportion spent on hospitals and physicians has declined between 1975 and 2009 while the amount spent on pharmaceuticals has increased. Of the three biggest health care expenses, the amount spent on pharmaceuticals has increased the most. In 1997 the total price of drugs surpassed that of doctors. In 1975 the three biggest health costs were hospitals ($5.5B/44.7%), physicians ($1.8B/15.1%), and medications ($1.1B/8.8%) while in 2007 the three biggest costs were hospitals ($45.4B/28.2%), medications ($26.5B/16.5%), and physicians ($21.5B/13.4%). In 2009, the government funded about 70% of Canadians' health care costs. This covered most hospital and physician cost whiles the dental and pharmaceutical costs were primarily paid for by individuals. This is slightly below the OECD average. Under the terms of the Canada Health Act, public funding is required to pay for medically necessary care, but only if it is delivered in hospitals or by physicians. Health care costs per capita vary across Canada with Quebec ($4,891) and British Columbia ($5,254) at the lowest level and Alberta ($6,072) and Newfoundland ($5,970) at the highest. It is also the greatest at the extremes of age at a cost of $17,469 per capita in those older than 80 and $8,239 for those less than 1 year old in comparison to $3,809 for those between 1 and 64 years old in 2007.
Private Sector
Although, the Health Act was designed to prevent the development of a two-tiered system, nothing is ever that straightforward. Given the preponderance of long waiting times, some analysts have argued that the Act does not apply: surgery performed without waiting is simply not the same treatment as surgery for which one is required to wait months. The distinction has never been tested in the courts, but it has led to a growing private sector in areas once thought to be off-limits. The core requirement of the 1984 Act is that hospital and physician services be 100 per cent publicly financed. But as health care becomes less focused on hospital and physician care (together they comprise less than half of total health care expenditure in Canada) and more focused on community care and drugs (the latter now exceed physician costs), less and less healthcare treatment service is covered by Medicare. Dental insurance, eye-care insurance, insurance for prescription drugs, ambulance services, medical devices, private health insurance covering the upgrading of hospital rooms and out of country insurance are all outside the scope of Medicare. . The public seem ready for an expansion of the private sector. In 2002 the Canadian Medical Association sponsored a poll on user fees. Its results were far from expected; 57 % supported user fees (A further Michael poll in August 2001 found that a clear majority of Canadians support both user fees and a private insurance option. (A first, similar poll in 1991 found only a small percentage of the public accepting such ideas.) The 2005 Health Care in Canada survey by the public opinion research firm POLLARA shows that 49 % of the public said they would be willing to make out-of-pocket payments to purchase faster access to health care. A majority also believe that expanding private insurance would: result in shorter waiting times (68 %), provide better access to healthcare (59 %) and improve quality (60 %). Private Clinics In addition to public health care providers such as primary care doctors and hospitals, many private clinics offering specialized services also operate in Canada. Under federal law, private clinics are not legally allowed to provide services covered by the Canada Health Act. Regardless of this legal issue, many do offer such services. The advantage of private clinics is that they typically offer services with reduced wait times compared to the public health care system. For example, obtaining an MRI scan in a hospital could require a waiting period of months, whereas it could be obtained much faster in a private clinic. Private clinics are a subject of controversy, as some feel that their existence unbalances the health care system and favors treatments to those with higher incomes. Costs in private clinics are usually covered by private insurance policies, which will typically pay around 80% of the costs. Private Health Insurance While the health care system in Canada covers basic services, including primary care physicians and hospitals, there are many services that are not covered. These include things like dental services, optometrists, and prescription medications. Private health insurance plans are usually offered as part of employee benefit packages in many companies. Incentives usually include vision and dental care. Alternatively, Canadians can purchase insurance packages from private insurance providers. The main reason many choose to purchase private insurance is to supplement primary health coverage. For those requiring services that may not be covered under provincial health insurance such as corrective lenses, medications, or home care, a private insurance plan offsets such medical expenses.
While private insurance can benefit those with certain needs, many Canadians choose to rely exclusively on the public health system. About 30% of Canadians' health care is paid for through the private sector. This mostly goes towards services not covered or only partially covered by Medicare, such as prescription drugs, dentistry and optometry. Some 65% of Canadians have some form of supplementary private health insurance; many of them receive it through their employers. There are also large private entities that can buy priority access to medical services in Canada, such as WCB in BC. The Canadian system is for the most part publicly funded, yet most of the services are provided by private enterprises. Most doctors do not receive an annual salary, but receive a fee per visit or service. According to Dr. Albert Schumacher, former president of the Canadian Medical Association, an estimated 75 percent of Canadian health care services are delivered privately, but funded publicly. "Frontline practitioners whether they're GPs or specialists by and large are not salaried. They're small hardware stores. Same thing with labs and radiology clinics .The situation we are seeing now are more services around not being funded publicly but people having to pay for them, or their insurance companies. We have sort of a passive privatization." "Although there are laws prohibiting or curtailing private health care in some provinces, they can be changed," according to a report in the New England Journal of Medicine. In June 2005, the Supreme Court of Canada ruled in Chaoulli v. Quebec (Attorney General) that Quebec's prohibition against private health insurance for medically necessary services laws violated the Quebec Charter of Human Rights and Freedoms, potentially opening the door to much more private sector participation in the health system. Justices Beverley McLachlan, Jack Major, Michel Bastarache and Marie Deschamps found for the majority. "Access to a waiting list is not access to health care," wrote Chief Justice Beverly McLachlan. The Quebec and federal governments asked the high court to suspend its ruling for 18 months. Less than two months after its initial ruling, the court agreed to suspend its decision for 12 months, retroactive to June 9, 2005. This means that, for the interim, there would be no change to the status quo.
Criticisms
Health Canada, a federal department, publishes a series of surveys of the health care system in Canada based on Canadians first hand experience of the health care system.Although life threatening cases are dealt with immediately, some services needed are non urgent and patients are seen at the next available appointment in their local chosen facility.The median wait time in Canada to see a special physician is a little over four weeks with 89.5% waiting less than 90 days.The median wait time for diagnostic services such as MRI and CAT scans is two weeks with 86.4% waiting less than 90 days.The median wait time for surgery is four weeks with 82.2% waiting less than 90 days. Another study by the Commonwealth Fund found that 57% of Canadians reported waiting 30 days (4 weeks) or more to see a specialist, broadly in line with the current official statistics. A quarter (24%) of all Canadians waited 4 hours or more in the emergency room. The Canadian Health Coalition has responded succinctly to Day's claims, pointing out that "access to veterinary care for animals is based on ability to pay. Dogs are put down if their owners cant pay. Access to care should not be based on ability to pay." Regional administrations of Medicare across Canada publish their own wait time data on the internet. For instance in British Columbia the wait time for a hip replacement is currently a little under ten weeks. The CHC is one of many groups across Canada calling for increased provincial and federal funding for Medicare and an end to provincial funding cuts as solutions to unacceptable wait times. The Fraser Institute, a conservative think tank, claims to do its own research and found that treatment time from initial referral by a GP through consultation with a specialist to final treatment, across all specialties and all procedures (emergency, non-urgent, and elective), averaged 17.7 weeks in 2005. However, the report of the Fraser Institute, an organization advocating a "prosperous world through. Markets" is greatly at odds with the Canadian government's own 2007 report. Canadian psychiatrist Dr David Gratzer, who is also employed by the libertarian Cato Institute, was once asked by U.S. congressman Dennis Kucinich if he knew what the wait time for diagnostic imaging procedures such as CT scans and MRIs was across Canada. Gratzer began his reply "I can tell you what the Ontario government said it was for cancer " when Kucinich cut him short and gave him the true figure of 3 weeks, just as Gratzer was uttering the answer of "six months" to his preferred question. Criticisms have been laid during the administration of H1N1 shots in 2009, in parts of Canada, including Hamilton and Toronto. "Wait times for flu shots continued to be hours long yesterday [October 29] as Hamiltonians lined up for the only protection from H1N1 that public health can offer. Waits were about five hours at the clinic on the West Mountain, with 1,000 people in line. The Dundas clinic wasn't much better, with 700 waiting for a shot." "Hundreds of people who lined up in Toronto today were given slips of paper with a time on it so they could return for their vaccination without standing around for hours on end." Since 2002, the Canadian government has invested $5.5 billion to decrease wait times. In April 2007, Canadian Prime Minister Stephen Harper announced that all ten provinces and three territories would establish patient wait times guarantees by 2010. Canadians will be guaranteed timely access to health care in at least one of the following priority areas, prioritized by each province: cancer care, hip and knee replacement, cardiac care, diagnostic imaging, cataract surgeries or primary care.
It has been observed and found in data that the complete elimination of all waiting times is not ideal. When waiting lists arise through a prioritization process based on physician-determined medical urgency and the procedure's risk, (in contrast to patient's ability to pay or profitability for the physician), waiting lists can possibly help patients. It's been postulated that a system of immediate care can be detrimental for optimal patient outcomes due to avoidance of unnecessary or unproven surgery. An example is the Canadian province of British Columbia, where, according to surgeon Dr. Lawrence Burr, 15 heart patients died in 1990 while on a waiting list for heart surgery. According to Robin Hutchinson, senior medical consultant to the Health Ministry's heart program, had the waiting list not existed and all patients given instant access to the surgery, the expected number of fatalities would have been 22 due to the operation mortality rate at that time. Hutchison noted that the BC Medical Association's media campaign did not make reference to these comparative statistics and only focused on deaths during waiting for surgery. Since, ideally, waiting lists prioritize higher-risk patients to receive surgery ahead of those with lower risks, this helps reduce overall patient mortality. Consequently, a wealthy or highly-insured patient in a system based on profit or ability to pay (as in the U.S.) may be pushed into surgery or other procedures more quickly, with a result in higher morbidity or mortality risk. This is in addition to the betterunderstood phenomenon in which lower-income, uninsured, or under-insured patients have their care denied or delayed, also resulting in worse health care.
Many US citizens purchase prescription drugs from Canada, either over the Internet or by traveling there to buy them in person, because prescription drug prices in Canada are substantially lower than prescription drug prices in the United States; this cross-border purchasing has been estimated at $1 billion annually. Because medical marijuana is legal in Canada but illegal in most of the US, many US citizens suffering from cancer, AIDS, multiple sclerosis, and glaucoma have traveled to Canada for medical treatment. One of those is Steve Kubby, the Libertarian Party's 1998 candidate for governor of California, who is suffering from adrenal cancer. Recent legal changes such as Proposition 215 may decrease this type of medical tourism from California only. Sarah Palin, in an appearance in Calgary, told her audience that she and her family once used the Canadian health-care system.
Healthcare Expenditure
The Canadian healthcare system is funded primarily by tax dollars. The federal government makes cash transfers to the provinces, but the provinces may levy their own taxes to help defray the costs. Alberta and British Columbia require a health insurance premium, and other provinces have instituted employer payroll taxes.In2004, $91.1 billion or 70% of total health spending was by the public sector. Private sector spending totaled $39.2 billion in 2004, or 30%. In 2004, total health expenditure was estimated at $130 billion, about 10 per cent of GDP (Ibid). This is estimated to be around $4,078 per person. Latest OECD figures on spending per person is for year 2002, when it reports Canada spent $2,931 per person using purchasing power parities (PPPs), up from $2587 as used in report. This was the third highest, below the USA and Switzerland. Federal governments contributions have decreased significantly in 1998; federal payments make up only slightly more than 20 percent of provincial medical care costs (Kraker, 2002). Provincial government share of total health spending was up to 63.8 per cent in 2002. Other public sector expenditure (which includes federal spending, social security funds and municipal government) totals 5.9 per cent. Private sector spending accounted for 30.3 per cent of total spending in 2002. Private expenditure, which goes towards the cost of services (such as clinics for eye laser surgery or in-vitro fertilization) not covered by provincial health insurance programmes, is divided between out-of-pocket expenditure and insurance.
Bibliography:
en.wikipedia.org/wiki/Health_care_in_Canada www.hc-sc.gc.ca/hcs-sss/index-eng.php www.canadian-healthcare.org/ www.civitas.org.uk/pdf/Canada.pdf