Quebec’s social programs are going to take a substantial hit in the near future and needs to prepare now for the coming “demographic squeeze,” says a report out this week from the C.D. Howe Institute.
Among its recommendations the study, Managing Healthcare for an Aging Population: The Fiscal Challenge Quebec Has Yet to Face, suggests the province prefund the at least some of the healthcare services similar to how the Quebec Pension Plan (QPP) is financed. QPP converted from pay-as-you-go to a model in which a portion of premiums collected from participants today prefunds their benefits in the future.
Quebec spends less than any other province on “total healthcare,” which includes physicians and public health services such as food and drug safety, health inspections, health promotion activities, and community mental health programs. However, the province spends increasing more on “other institutions,” which includes nursing and residential care homes.
“Having nursing and residential home costs in line with the national average would lower Quebec’s spending by some $750 million annually,” says William Robson, one of the study’s authors. “Comparing bang-for-buck in these areas with other provinces could help Quebec deliver quality care without compromising other fiscal goals, such as fair tax rates for tomorrow’s working population.” added Robson.