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Volume 4, Number 32 - January 17, 2003
Canada's Health Care Overhaul

 

   Canadians insist they are not just like those Americans south of the border.

   As proof, they point to their universal health insurance program and to the fact they celebrate Thanksgiving in October, not November.

   There is little chance they will change the date of Thanksgiving but it looks more and more as though the health care program will be much like the kind of coverage offered through the U.S. Medicare plan and supplemental policies available to those who can afford them.

   Canada has been struggling with its plan for more than 50 years. Early in 2002, Ottawa created yet another royal commission to study its plan and offer proposals for keeping it from bankruptcy -- and to improve medical services so Canadians don't have to wait months for procedures considered routine in the United States.

   That commission, headed by former Saskatchewan Premier Roy Romanow, has submitted its 356-page report for consideration by the health ministers of the provinces and territories. In late January it will go to Prime Minister Jean Chretien and the provincial premiers. Approval by the provinces is necessary because while the Canadian plan now is mandated by federal law, it is operated by the provinces.

   That division of responsibilities has been the crux of the program's problems. By collecting the taxes and parceling the revenues out to the provinces, Ottawa was able to tell the provinces what they could and could not do. When some provinces decided they would run a two-tier health system, with basic care covered by the national plan and "extras" such as MRIs and CAT scans available for additional fees, Ottawa said, "No, no," and withheld the provinces' funds.

   When the Liberal Party won control of the federal government 10 years ago it set out to balance the federal budget. The budgets had been in deficit for so long, the interest on the federal debt had become a major budget item.

   Former Finance Minister Paul Martin "balanced" the budgets by cutting the funding for health care. The health program became unfunded mandates for the provinces. Ottawa's "club" over the provinces became less of a threat and some provinces actually developed private hospitals and doctors began offering some services for fees. Worst of all, many hospitals were closed and wages of nurses and other health care workers were frozen, resulting in strikes.

   Adding to the problem was the fact that the cost of medical care was rising steadily due to the introduction of expensive diagnostic machines and the rising cost of pharmaceuticals.

   Politicians, doctors and patients had forgotten the words of the late T.C. Douglas, the long-serving premier of Saskatchewan and "father" of Canada's medical care. His plan, he cautioned, was to provide "reasonable access" to medical and hospital care. Citizens should not expect the moon.

   So what is Romanow proposing to be done to bring expectations back to earth?

   To some Canadians it sounds like "the moon" still. At least, it is $6.5 billion more each year by 2005. He wants $8.5 billion over the first two years to bring better health care to rural and remote areas, reduce waiting times for diagnostic services, hire more general practitioners, nurses and aides, create a home-care plan and provide some assistance on prescription drug costs.

   Romanow says the system must be more accountable. To achieve that, he proposes creation of a Health Council, with members from governments, the health system and the public. The council would establish benchmarks for performance and report regularly on waiting times and other matters. There were no suggestions as to penalties for low performance scores.

   The Romanow report comes as Chretien begins what he has announced will be his last full year in office. He is known to want health care reform as his legacy, an achievement for which he will be remembered in the history books.

   Because of Martin's budget-balancing act while he was finance minister, Canada is in a somewhat stronger fiscal position now, but there is no assurance that future finance ministers will be able to show budget surpluses. Indeed, Romanow himself says his plan will not begin to show results until perhaps 2005.

   Chretien himself says Parliament probably won't vote all the money Romanow is seeking. His $6.5 billion a year would bring Canada's bill for public health care to $72.5 billion. And public opinion polls have shown increasing willingness to accept some form of two-level care. That swing has been noted especially in Alberta, British Columbia, Ontario and Quebec. So health care could be the crucial issue in the next federal elections, which probably will be called soon after Chretien leaves the scene.
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Copyright 2003 by United Press International.
All rights reserved.