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

FILE – Wet’suwet’en hereditary chiefs have agreed to sign a memorandum on rights and title with B.C. and Ottawa, but elected chiefs are demanding it be called off over lack of consultation. (Thom Barker photo)
Wet’suwet’en hereditary chiefs, Lake Babine Nation get provincial funding for land, title rights

Government says it’s a new, flexible model for future agreements between Canada, B.C. and First Nations.

The property on which a residential school (pictured) that was torn down years ago in Lower Post is to be the location of a cultural centre. (Indian Residential School History and Dialogue Centre photo)
Lower Post residential school building to be demolished, replaced with cultural centre

Project to be funded by federal and provincial governments, Daylu Dena Council

Photo collage of loved ones lost to substance use and overdose. (Photo courtesy Moms Stop The Harm)
B.C. overdose deaths still rising 5 years after public health emergency declared

Moms Stop the Harm calls on B.C. to provide safe supply in response to deadly illicit drug use

Restaurant patrons enjoy the weather on a patio in Vancouver, B.C., Monday, April 5, 2021. The province has suspended indoor dining at restaurants and pubs until at least April 19 in B.C. due to a spike in COVID-19 numbers. THE CANADIAN PRESS/Jonathan Hayward
B.C. sets new COVID-19 daily record with 1,293 cases Thursday

New order allows workplace closures when infections found

The new 3,500 hectare conservancy in Tahltan territory is located next to Mount Edziza Provincial Park. (BC Parks Photo)
New conservancy protects sacred Tahltan land near Mount Edziza Provincial Park

Project is a collaboration between Skeena Resources, conservation groups and the TCG

Vancouver resident Beryl Pye was witness to a “concerning,” spontaneous dance party that spread throughout social groups at Kitsilano Beach on April 16. (Screen grab/Beryl Pye)
VIDEO: Dance party erupts at Vancouver’s Kitsilano Beach to the dismay of onlookers

‘It was a complete disregard for current COVID-19 public health orders,’ says Vancouver resident Beryl Pye

Deputy Prime Minister and Minister of Finance Chrystia Freeland responds to a question during Question Period in the House of Commons Tuesday December 8, 2020 in Ottawa. The stage is set for arguably the most important federal budget in recent memory, as the Liberal government prepares to unveil its plan for Canada’s post-pandemic recovery even as a third wave of COVID-19 rages across the country. THE CANADIAN PRESS/Adrian Wyld
Election reticence expected to temper political battle over federal budget

Opposition parties have laid out their own demands in the weeks leading up to the budget

A syringe is loaded with COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS/Jonathan Hayward
B.C. to open up COVID vaccine registration to all B.C. residents 18+ in April

Registration does not equate to being able to book an appointment

(Black Press file photo).
Multiple stabbings at Vancouver Island bush party

Three youths hospitalized after an assault in Comox

Selina Robinson is shown in Coquitlam, B.C., on Friday November 17, 2017. British Columbia’s finance minister says her professional training as a family therapist helped her develop the New Democrat government’s first budget during the COVID-19 pandemic, which she will table Tuesday. THE CANADIAN PRESS/Darryl Dyck
B.C. finance minister to table historic pandemic-challenged deficit budget

Budget aims to take care of people during pandemic while preparing for post-COVID-19 recovery, Robinson said

Each spring, the Okanagan Fest-of-Ale is held in Penticton. This year, as a result of the COVID-19 pandemic, the festival will not be held. However, beer is still available. How much do you know about this beverage? (pxfuel.com)
QUIZ: How much do you really know about beer?

Put your knowledge to the test with this short quiz

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

Lord Tweedsmuir’s Tremmel States-Jones jumps a player and the goal line to score a touchdown against the Kelowna Owls in 2019. The face of high school football, along with a majority of other high school sports, could significantly change if a new governance proposal is passed at the B.C. School Sports AGM May 1. (Malin Jordan)
Power struggle: New governance model proposed for B.C. high school sports

Most commissions are against the new model, but B.C. School Sports (BCSS) and its board is in favour

Pall Bearers carrying the coffin of the Duke of Edinburgh, followed by the Prince of Wales, left and Princess Anne, right, into St George’s Chapel for his funeral, at Windsor Castle, in Windsor, England, Saturday April 17, 2021. (Danny Lawson/Pool via AP)
Trudeau announces $200K donation to Duke of Edinburgh award as Prince Philip laid to rest

A tribute to the late prince’s ‘remarkable life and his selfless service,’ the Prime Minister said Saturday

Most Read