Media Clipping — Wednesday July.16th, 2008, The Canadian Press
Also printed in The Chronicle Herald, Winnipeg Sun and Pictou County News

New Report Says Canadians Spending More Out of Pocket on Health Care

Canadians are spending more out of their own pockets on health care than they were two decades ago, increasing the risk for financial ruin among low-income earners, a new report says.

According to GPI Atlantic, a Nova Scotia think-tank, the average Canadian spent $452 on health care in 2007, compared with $222 in 1981, in constant dollars. Report co-author Andrew Sharpe said Wednesday much of the increase was driven by two factors: the rising costs of health care not covered by provincial insurance, and the fact that fewer costs are being covered.

"Optometrists in Ontario used to be covered by (Ontario health insurance) and that's no longer," Sharpe said.

In the last decade, the average cost of dental care in Canada went up more than 70 per cent, while eye care went up nearly 50 per cent.

"Those were large increases well above the inflation rate," Sharpe said.

In a 2007 survey, six per cent of Canadians reported they had spent more than $1,000 in the past year out-of-pocket on prescription drugs. Only the United States ranked higher, with 13 per cent of Americans reporting the same level of spending.

Within Canada, residents of Prince Edward Island and British Columbia spent the biggest percentage of their disposable incomes - a little more than two per cent - on private health care costs.

Those in Newfoundland and Labrador spent the least at 1.5 per cent. People in Nova Scotia, Ontario and Alberta spent just under two per cent. Sharpe said that big income growth in Alberta and Newfoundland and Labrador in recent years offset their increase in private health-care spending.

Report co-author Lars Osberg said the differences between the provinces in the percentages of disposable income spent on health care are minimal because private spending has gone up across the board.

The report also cited a paper issued by the Health Council of Canada last month critical of the federal government for its slow progress in getting more Canadians access to public drug insurance.

In 2003, the federal government pledged to implement enhanced drug coverage for low-income earners or those with high drug costs as part of its historic Health Care Accord.

The goal was to put wider coverage in place across the country by 2006, but the council says action on the plan has stalled.

According to the Canadian Institute for Health Information, public-sector spending on health care in 2007 was an estimated $113 billion, while private-sector spending - including privately insured and out-of-pocket expenses - was an estimated $47.1 billion.

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