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What You Should Know About Canadian Healthcare in Canada

Canadian Healthcare

As the name implies, Healthcare is any product or service that is provided to take care of your health. Developed countries like Canada have advanced healthcare systems that help citizens of their country recover from injuries, illnesses or take care of any operations or treatments they may need. In Canada, the most common way citizens are provided healthcare is through a tax-funded public healthcare system, although other healthcare types are available. Read on for crucial information about the Canadian healthcare system in Canada. 

History of Canadian Healthcare

Canadian healthcare hasn’t always existed with the initial constitution not mentioning healthcare or even the word health. However, in the early 1900s, Thomas Clemence Douglas, a well-known Canadian politician, and clergyman, almost lost his limb to osteomyelitis because he could not pay for the necessary healthcare. 

In 1959, when Douglas became the Social Democratic Premier of the province, Saskatchewan, he started applying universal public healthcare for the province, making it the first province in the entire continent of North America to have public health insurance for its people. The insurance, which he named Medicare, originally only covered care in hospitals but was later expanded to include physician services in 1962. In 1968, the Canadian Medical Care Insurance Act was passed, and by 1971, all provinces had developed public health insurance plans for their citizens. In 1984, under the care of the Minister of National Health and Welfare, Monique Bégin, parliament unanimously passed the Canada Health Act, which established the public healthcare system in Canada and is considered by many a national treasure.

Healthcare Insurance Types in Canada 

When it comes to healthcare in Canada, there are three types of insurance available. The most widespread is Medicare, the government’s public health insurance that was started with the Canada Health Act. With this public health insurance, you don’t have to pay for most medical services. This healthcare service is typically paid through taxes and allows citizens to get a government health card to access free healthcare services. However, if you are in an emergency situation, you can still seek free medical care even if you don’t have this government health card. There may be certain restrictions if you are an immigrant, but generally, this is the case. If you find yourself in an emergency, head to the nearest hospital, as clinics may charge fees if you don’t live in that province. 

The second type of healthcare insurance provided in Canada is Personal Health Insurance. It is an insurance plan offered by private insurance companies. Some citizens may opt for Personal Health Insurances as they offer higher coverage than Medicare, while others may purchase them alongside Public health insurance as Medicare doesn’t cover some healthcare services. Such services may include costs for medical prescriptions, dental care, physiotherapy, and purchasing prescription eyeglasses. 

The third type of healthcare offered in Canada is Private Insurance, a healthcare service offered by an employer if you work at a company that provides it. It may also be used in conjunction with Public healthcare service plans. 

Taxability of Canadian Healthcare 

Each of the three types of healthcare services is treated differently regarding taxes. Public health insurance relies heavily on taxes as it is founded on taxpayer money, which means that Canadian tax-paying residents indirectly play a role in financing healthcare services. Personal Health insurance plans in Canada, are sold by private companies and are fully taxable. Private Health insurance, which your employer sponsors, are typically tax-free for employees of the company. To ensure that the insurance provided to their employees is tax-free, participating companies must create an insurance plan that complies with guidelines provided by the Canadian Government. Despite the healthcare plan you are on, you may be forced to pay for specific treatments and services. However, you can attribute some of these services to taxes and later get your money back. 

Canadian Healthcare Costs 

Canada is known for spending a lot on its public healthcare costs as it is a high priority for the country. For example, more than 11% of Canada’s Gross Domestic Product (GDP) is spent on its healthcare system and services, meaning that more than 6,000 Canadian Dollars (around 4,500 US Dollars) are spent on average on each Canadian citizen’s healthcare. However, because the public healthcare system is founded on taxpayers’ money, it means that citizens are paying a lot for their healthcare, especially as healthcare costs increase every year. Still, no Canadian is left behind - if someone can’t afford to pay for healthcare, they are never denied healthcare services. This system of inclusive healthcare, regardless of wealth, is hard to find in many other countries. 

In Canada, the public health care system is a source of national pride. Still, some Canadian citizens opt for personal healthcare plans that they pay for themselves or private healthcare insurance provided by reputable employers. Either way, healthcare is an essential need that provides access to doctors and healthcare services essential to all citizens throughout their lives. Hopefully, this article helped you gain important information about the Canadian healthcare system in Canada.