Parliament's budget watchdog says the new health-care funding formula will slowly reduce Ottawa's support for medicare, but it will also put the federal government on a solid fiscal footing for the future.
The trouble is the provinces will have to shoulder a growing health-care burden over the long run and they can't afford to do that without cutting spending elsewhere or raising taxes.
That means Ottawa's share of provincial health-care funding will fall to an average of about 18.6 per cent for the coming two decades from about 20.4 per cent today. It will continue to slide significantly after 2035 if the policy persists.Harper's plan will only help Ottawa cut spending, and might help create long term fiscal improvements, but at the extend of forcing the provinces to take all the burden. Harper wants Ottawa to be the one that doesn't increase any taxes, and wants the provinces to look like they are the one's increasing the taxes and cutting spending. This plan is dangerous, and if used for to long will allow people on the right to say that universal health care is unaffordable. The truth is this plan makes health care unaffordable, by doing nothing to try and slow the rate of demand for health care. This won't require a huge overhaul, and can be very budget friendly.
First invest in prevention. in the U.S one third of Medicare spending can be saved if the U.S invest in prevention techniques that will stop people from becoming obese, having lung cancer etc.... Two tax fast food chains and soda pop. Use that money to pay for the prevention spending and also for the third part of the plan which is to modernizing hospital equipment.
These are only some of the policies that could be enacted to save money and improve health care. We don't need to force the provinces into bankruptcy just to save money on the federal end. We can reduce the increase from 6%, but only and only if we do the policy above which will help reduce the need for enormous amount of Health care spending.