The Canadian healthcare system is basically subsidized by tax dollars. The federal government provides budget to provinces, though provinces may put their own taxes to augment settling of the cost of Health Care for every member. In 2004, $91. 1 billion or 70% of total health spending was by the public sector. Private sector spending summed up to $39. 2 billion in 2004, or 30%.
2004 and the total health expenditure was estimated at $130 billion, about 10 per cent of GDP which is estimated to be around $4,078 per person. This expenditure makes Canada the third highest, below the USA and Switzerland (Irvin, B. et al. 2005 P 2. ). Federal government’s contributions have decreased significantly in 1998; federal payments make up only slightly more than 20 percent of provincial medical care costs. Provincial government share of total health spending was up to 63.
8 per cent in 2002. Other public sector expenditure (which includes federal spending, social security funds and municipal government) totals 5. 9 per cent. Private sector spending accounted for 30. 3 per cent of total spending in 2002.
Private expenditure, which goes towards the cost of services (such as clinics for eye laser surgery or in-vitro fertilization) not covered by provincial health insurance programs, is divided between out-of-pocket expenditure and insurance (Ibid).