A typical Canadian family of four will pay $11,735 for public healthcare insurance in 2015, finds a Fraser Institute study.
“Contrary to what many believe, healthcare in Canada isn’t free,” says Bacchus Barua, study co-author and senior economist in the Fraser Institute’s Centre for Health Policy Studies. “While Canadians may not pay directly for medical services, they pay a substantial amount of money for health care through their taxes.”
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Most Canadians are unaware of the true cost of healthcare because they never see a bill for medical services and only pay a small so-called “premium” for health insurance (in provinces that impose them), The Price of Public Health Care Insurance study says.
Moreover, general government revenue—not a dedicated tax—funds healthcare, making it difficult for Canadians to decipher how much of their tax dollars actually go towards health insurance. The study uses data from Statistics Canada and the Canadian Institute for Health Information to calculate the cost.
The average Canadian family with two parents and two children earning $119,082 will pay $11,735 for public healthcare insurance in 2015, the study finds. A single individual earning $42,244 can expect to pay $4,222.
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The study also tracks the cost of healthcare insurance over time: Between 2005 and 2015, the cost of healthcare for the average Canadian family (all family types) increased by 48.5%, dwarfing increases in income (30.8%), shelter (35.9%) and food (18.2%).
“Over the past decade, the cost of healthcare in Canada has grown 1.6 times faster than average income,” Barua says.
“The real cost of public healthcare insurance for different family compositions should be a fundamental component of any debate about health care in Canada. Once Canadians know how much they actually pay for healthcare through taxes, they will be in a better position to decide if the system delivers good value for their money.”
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