The Canadian Institute for Health Information released a report Thursday projecting that health-care spending in the country will reach a new high in 2024, totaling up to $372 billion, or about $9,054 per Canadian.
This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product, with the Canadian dental and pharmacare plans expected to push spending higher as more people who previously couldn’t afford these services begin accessing them.
CIHI’s report follows Statistics Canada’s announcement in October that the dental sector surpassed its pre-pandemic productivity levels, with an increase of $851 million compared to 2019, a year marked by significant global economic challenges. Also, the Canadian Dental Care Plan (CDCP) has already expanded on Nov. 1 to include additional services, having already helped more than one million Canadians access dental care. Early in 2025, new phases of the CDCP will roll out to include additional cohorts, further increasing costs.
In addition, the Pharmacare Act, which became law on October 10, will soon provide Canadians with access to essential medications, including those for diabetes and contraception, which can cost hundreds or thousands of dollars out of pocket each year.
So far, CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent last year and 1.7 per cent in 2022.
Here are some of CIHI findings:
- Health expenditures are anticipated to represent 12.4 per cent of Canada’s gross domestic product (GDP) in 2024, the highest ratio ever recorded outside the 2020 and 2021 pandemic period.
- Hospital expenditures are projected to increase by 6.3 per cent in 2023 and 6.1 per cent in 2024, while physician expenditures are expected to increase by 7.5 per cent in 2023 and 4.4 per cent in 2024. Total drug expenditures are projected to rise by 5.6 per cent in 2023 and 3.8 per cent in 2024.
- Total private-sector health expenditures are projected to increase by 6.2 per cent in 2023 and 6.1 per cent in 2024. Private-sector spending mainly includes out-of-pocket payments and private, voluntary health insurance.
- Among 38 countries in the Organisation for Economic Co-operation and Development (OECD), Canada had one of the highest amounts of per capita spending in 2022 (the latest year for which comparable data is available), at CA$8,119 — lower than Sweden (CA$8,314) and France (CA$8,212), but higher than Australia (CA$8,073) and New Zealand (CA$7,463).
