Healthcare costs have surged since 1997 says FI study

Healthcare costs have surged since 1997 says FI study

Healthcare costs have surged since 1997 says FI study

The cost of healthcare for a typical Canadian family has increased by more than 65.8% in the last 20 years.

While most Canadians don’t see the amount they pay for healthcare as a bill for medical services, the amount paid through federal taxes and health insurance ‘premium’ tax, amounts to a sizeable share of average household income.

A study by the Fraser Institute reveals that a family of two adults and two children, earning the average household income of $140,049 will pay $13,311 for public health care in 2019.

The 65.8% increase since 1997 is adjusted for inflation.

For single Canadians, their health-care costs have more than doubled from $2,150 (in 2019 dollars)  in 1997 to $4,544 this year.

“Despite misleading claims of Canada’s ‘free’ health-care system, Canadians actually pay a substantial amount of money for health care through a variety of taxes—even if they don’t pay directly for medical services,” said Bacchus Barua, associate director of health policy studies at the Fraser Institute and co-author of The Price of Public Health Care Insurance, 2019.

The amount Canadian families pay for health care varies widely depending on their income.

The 10% of families with the lowest incomes (earning $15,070 per household, on average) will pay $464 for health care in 2019, while families among the top 10% of income earners (earning a household income of $298,872, on average) will pay $39,486, the study shows.

“Only when Canadians understand how much we pay for our public health-care system can we better decide whether or not we get good value for our money,” Barua said.

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