Further Analysis of Future Canadian Health Care Costs

Abstract

The Canadian public health care delivery system continues to experience growing needs for increased funding. The total health care delivery system today costs Canadians $98 billion a year or about 9.7% of GDP. Of that total cost, 71% is paid by the government, which means the taxpayers. While that may pale in comparison to the costs in the United States, it does make the Canadian system one of the five most expensive health care delivery systems in the world. While today’s cost pressures are of major concern, of even more concern are the costs being projected by many participants in the current health care debate for the period when the baby boom makes higher demands on the Canadian health care delivery system. Traditional projection methods, however, do not differentiate as to the use of health care systems between the elderly who survive the year versus those who die. This paper first looks at the impact that this differentiation could have on projected costs. It then looks at the impact that the wide use of advance directives might have on future health care costs and some of the issues surrounding their use.

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