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Blog Post 2023-04-23

Extra $200 Billion Allocated to Canadian Healthcare Over the Next Decade

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In Canada’s 2023 Budget, an increased emphasis was placed on healthcare expenditure. Although healthcare falls under provincial and territorial jurisdiction, the COVID-19 pandemic highlighted pre-existing labour shortages and insufficient funding, leading to requests for increased federal support.


The growing elderly population in Canada further burdens the healthcare system. As indicated by the 2021 census, 861,395 Canadians are aged 85 and over, with an additional 2.1 million aged between 75 and 85. This demographic trend contributes to a low unemployment rate and a high demand for skilled healthcare immigrants, but also calls for increased healthcare support.


In response, the Canadian government announced in early February that it would invest nearly $200 billion into healthcare over the next decade, in addition to existing commitments. This includes $46.2 billion for provinces and territories, as well as further Canada Health Transfer measures consisting of bilateral agreements with each province, tailored to their unique needs. The 2023 Budget elaborates on the allocation of these funds.


Dental Coverage for Canadians and Newcomers


The 2023 Budget reflects a commitment between the Liberal government and the NDP (New Democratic Party) to establish a national dental plan for uninsured Canadians. The Canadian Dental Care Plan is set to receive $13 billion over five years, followed by $4.4 billion annually.


Dental services in Canada have not been covered by provincial healthcare programs and are often inaccessible for low-income individuals. The Canadian Dental Association reports that Canadians spend an average of $378.60 per person on dental services each year.


The new plan aims to offer dental coverage to uninsured Canadians with an annual family income below $90,000, while eliminating co-pays for families earning under $70,000. Implementation is set to begin in 2023, but eligibility details for permanent and temporary residents, as well as a start date, have yet to be announced.


Children of uninsured parents are already benefiting from the Canada Dental Benefit, which provides tax-free payments to cover dental care costs for eligible children under 12.


Additional Healthcare Expenditures


The Budget also proposes several other healthcare initiatives. $158.4 million will be allocated over three years to establish and operate a 988 hotline for suicide prevention and mental health crisis support, launching November 30, 2023.


According to the Canada Community Health Survey from December 2022, 1.5% of immigrants and 3% of the Canadian-born population experienced suicidal thoughts in the previous year.


Furthermore, the Budget allocates $36 million over three years to renew the Sexual and Reproductive Health Fund. This fund aids community-based organizations in providing vulnerable populations, including newcomers, with accessible abortion and other sexual and reproductive health care services. In Canada, abortion is legal and all women have the right to choose, regardless of their immigration status.


Lastly, $10 million over two years will be directed to ParticipACTION’s Let’s Get Moving Initiative, which supports national programming to increase daily physical activity.


Healthcare Access for Permanent and Temporary Residents in Canada


All permanent residents in Canada are entitled to free healthcare in their province of residence, covering most routine and emergency medical expenses. However, provincial healthcare systems typically do not cover eye care, glasses, dental care, prescription medications, or ambulance services.


In some provinces, there may be a waiting period of up to three months for permanent residents to become eligible for a provincial health card, which is issued once an individual has been a resident for a sufficient amount of time.


Since healthcare regulations differ among provinces, eligibility criteria for temporary residents also vary. It is recommended that temporary residents in Canada obtain private health insurance.