In a study that highlights the average health care spending of Canadian families, Fraser Institute has revealed that health care in the country isn’t free and a typical Canadian family spent $12K annually for public health care insurance in 2015.
The study – The Price of Public Health Care Insurance – is a result of Fraser Institute’s aim of providing Canadian families a means of understanding the cost of public health care for them and their families.
The report by the independent, non-partisan Canadian public policy think-tank, reveals that while Canadians aren’t paying anything for the health care directly, they are spending around 10 per cent of their annual income for health care through their taxes – average Canadian family with two parents and two children earning $119,082 will pay $11,735 for public health care insurance in 2015. A single individual earning $42,244 can expect to pay $4,222.
Bacchus Barua, study co-author and senior economist in the Fraser Institute’s Centre for Health Policy Studies, says that most Canadians aren’t aware of the actual cost of health care as they never see a bill and only pay a small so-called “premium” for health-insurance.
Fraser Institute also tracked the cost of health care insurance over a period of 10 years from 2005 to 2015 and found that the cost of health care for the average Canadian family increased by 48.5 per cent – a huge increase as compared to increase in income which stood at just 30.8 per cent, shelter 35.9 per cent and food 18.2 per cent.
“Over the past decade, the cost of health care in Canada has grown 1.6 times faster than average income,” Barua said.
The report notes that 10 per cent of Canadian families with the lowest incomes will pay an average of about $477 for public health care insurance in 2015. The 10 per cent of Canadian families who earn an average income of $59,666 will pay an average of $5,684 for public health care insurance and the families among the top 10 per cent of income earners in Canada will pay $37,180.
The Price of Public Health Care Insurance report used data from Statistics Canada and the Canadian Institute for Health Information. You can download the report for free from here [PDF].