Monday, November 27, 2006

Problems with the Canadian Healthcare System

I get into posting themes, don't I? I can't help how information comes to me, so I share it as it comes.

I recently came across this article in the Calgary Sun about problems with the Canadian health-care delivery system. This is of important note to us in the US as a warning about problems with universal healthcare systems (government paid healthcare for all). With the Democrats taking control of Congress, they will once again try to push us in that direction.

"The Fraser Institute is projecting health-care costs will consume 50% of Alberta’s budget by 2017. That’s a sharp ramp-up of the timeline the institute projected last year, when it felt Alberta wouldn’t be spending 50% of its revenues on health care until 2035. Now, the Fraser report says, Alberta will likely spend 100% of its revenue on health-care by 2030. "

That kind of spending can not be sustained. What are the possible solutions for Canada? What has been done in the past by the Canadian government?

"But the report argues that conventional government solutions won’t be feasible in the long run: Governments cannot continually raise taxes in order to cover increased health-care costs, because the end result of that would be provincial governments taxing 100% of everyone’s income. Nor can government continually run budget deficits and borrow the money needed to bridge the health-care funding gap. Nor, says the report, would the public stand for governments constantly delisting services from provincial health-care plans, or further rationalizing services by increasing waiting lists. "

Problems lie ahead for the Canadian healthcare system. Estimates of costs do not take into account a growing elderly population. We have to take these problems as a warning about how we proceed in the US with healthcare. The government solution does not appear to be the big answer that Democrat politicians would want us to believe.

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