The report suggests that the way Canada's healthcare system is organized must be improved
Upon reaching retirement, some Canadians may choose to move and live out their sunset years in another region. It’s a common trend, but this senior migration is proving problematic for one province in particular.
According to a new report from the Fraser Institute, seniors moving into BC after working and paying taxes elsewhere are costing the province billions of dollars in additional healthcare, reports CBC News.
Based on figures from the institute, 40,512 people over the age of 65 came to BC from other provinces from 1980 to 2016. Over that time, they reportedly added some $7.2 billion to the province’s healthcare expenditures.
“There are some provinces, like Quebec, that experience an outflow of seniors and they're saving money from that,” Jason Clemens, the Fraser Institute’s executive vice president, told the news outlet. “And then there are other provinces, particularly British Columbia, that attract a lot of seniors — and in British Columbia, it's a net cost.”
The institute argued that nearly three quarters of it is provided by working-age individuals aged 24 to 64 years old. Meanwhile, healthcare costs for the average person aged 65 to 74 years old amount to $7,401 annually; for those between 75 and 84, it’s $13,797 a year, which increases to $26,235 for those over age 85.
However, one expert thinks it’s not that simple. “British Columbia in this case is often a net gainer of migrants — those people that are in the labour force and contributing by paying taxes,” said Bruce Newbold, a professor at McMaster University who studies population movement.
Figures from Statistics Canada cast doubt on the Fraser Institute’s conclusions. Between 1980 and 2016, BC saw a net influx of more than 440,000 people from other provinces; over 330,000 of those were between 18 and 64. All told, migrating seniors make up less than 10% of the total new arrivals to BC over the last 36 years, according to CBC News.
Newbold also pointed out that seniors bring some assets with them. “[They] are bringing their retirement savings with them, their pensions, their experiences and their expertise, which often times can be applied back into the community through volunteer roles, or maybe taking up part-time employment,” he said.
The Fraser report acknowledges that it’s reasonable for people to move upon retirement, and that taxes paid by retirees mitigate the increase in healthcare costs they cause by as much as 36%. But Clemens still asserted that Canada needs to overhaul the way it organizes healthcare.
“What I hope is [the report] stimulates is a larger discussion about the way that we're organizing our healthcare system in Canada,” he said, suggesting that the country follow models where all citizens pay for insurance through private companies, a public fund, or non-profits.
Newbold, meanwhile, believes the federal government should reform its system of healthcare transfers by considering the proportion of seniors in each province.
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According to a new report from the Fraser Institute, seniors moving into BC after working and paying taxes elsewhere are costing the province billions of dollars in additional healthcare, reports CBC News.
Based on figures from the institute, 40,512 people over the age of 65 came to BC from other provinces from 1980 to 2016. Over that time, they reportedly added some $7.2 billion to the province’s healthcare expenditures.
“There are some provinces, like Quebec, that experience an outflow of seniors and they're saving money from that,” Jason Clemens, the Fraser Institute’s executive vice president, told the news outlet. “And then there are other provinces, particularly British Columbia, that attract a lot of seniors — and in British Columbia, it's a net cost.”
The institute argued that nearly three quarters of it is provided by working-age individuals aged 24 to 64 years old. Meanwhile, healthcare costs for the average person aged 65 to 74 years old amount to $7,401 annually; for those between 75 and 84, it’s $13,797 a year, which increases to $26,235 for those over age 85.
However, one expert thinks it’s not that simple. “British Columbia in this case is often a net gainer of migrants — those people that are in the labour force and contributing by paying taxes,” said Bruce Newbold, a professor at McMaster University who studies population movement.
Figures from Statistics Canada cast doubt on the Fraser Institute’s conclusions. Between 1980 and 2016, BC saw a net influx of more than 440,000 people from other provinces; over 330,000 of those were between 18 and 64. All told, migrating seniors make up less than 10% of the total new arrivals to BC over the last 36 years, according to CBC News.
Newbold also pointed out that seniors bring some assets with them. “[They] are bringing their retirement savings with them, their pensions, their experiences and their expertise, which often times can be applied back into the community through volunteer roles, or maybe taking up part-time employment,” he said.
The Fraser report acknowledges that it’s reasonable for people to move upon retirement, and that taxes paid by retirees mitigate the increase in healthcare costs they cause by as much as 36%. But Clemens still asserted that Canada needs to overhaul the way it organizes healthcare.
“What I hope is [the report] stimulates is a larger discussion about the way that we're organizing our healthcare system in Canada,” he said, suggesting that the country follow models where all citizens pay for insurance through private companies, a public fund, or non-profits.
Newbold, meanwhile, believes the federal government should reform its system of healthcare transfers by considering the proportion of seniors in each province.
Related stories:
Canada's public-private system draws comparison with US healthcare
Patient advocates speak out as Winnipeg moves to cut physiotherapy support
