Provincial-Territorial Ministers of Finance and Health agreed that a funding partnership is needed in sustaining and transforming Canada's health care systems to address the needs of patients and their families now and in the future – and that this partnership starts with a federal government that is willing to work with all jurisdictions.
The health funding partnership has weakened since the early days of Medicare. The federal share of provincial-territorial health spending is down from historical levels of funding and is projected to decline steadily over the longer term – particularly given the impending cut to the Canada Health Transfer (CHT) escalator, which has been in place since the 2004 Health Accord was signed.
Based on this unilateral federal decision made in 2011, the rate of CHT funding growth will be cut from 6 per cent to a new floor of 3 per cent beginning next year. The negative budgetary impact for all provinces and territories will be over $1 billion in the first year alone, and this figure is projected to increase to a cumulative impact of over $60 billion over the next ten years. This will put pressure on provincial-territorial health systems stability and long-term sustainability.
Today, Health and Finance Ministers from across Canada took the step to meet and discuss this important issue, and focus on a collaborative way forward.
We will continue to work together and report to Canada's Premiers who have, in the spirit of cooperation and reflecting the importance of this issue to Canadians, requested a specific meeting with Prime Minister Trudeau to discuss sustainable long-term health care financing before mid-December.
Finance Ministers and Health Ministers re-iterated Premiers call to the Prime Minister to hold a First Ministers' Meeting on health care sustainability and to reach a long-term agreement on health care funding.
Provincial and territorial Finance and Health Ministers strongly support the call by Canada's Premiers not to reduce the growth rate in the CHT before it can be considered by First Ministers. If a meeting is not possible within the proposed timeframe, the federal government should postpone the currently scheduled changes to the CHT escalator to provide an opportunity to reach a long-term funding agreement that reflects the needs of Canadians and is respectful of provincial-territorial jurisdiction.