Health Care Spending

Decent Essays
Health spending in Canada rose from $74 billion dollars per year in 1995 to about $222 bil- lion in 2015. Several factors drive health care spending. These include population growth, aging population, the increase in prices of health care related goods and services on top of economy-wide inflation. Increased demand for health care because of higher per capita income (income effect) and the greater rate of health care utilization due to deteriorating health and better access (supply) also affect health care expenditure. The introduction of new technologies in health care system (usually more efficient and technologically advanced method of treatment) increase cost. Finally, change in productivity in health care sector which can potentially…show more content…
By 2050, the proportion of the seniors will be one in four (25%). Aging population and Canadians retiring earlier today than they did in the past together implies fewer tax dollars for public healthcare funding. Population aging and its contribution to rising health care costs through different direct and indirect channels have kindled the debate about the financial sustainability of Canadas healthcare systems. The common perception is that aging population will have dreadful consequences and Canada will not be able to provide the increasing size of its older population.
Although Canadian elders enjoy financial safety and good health and have made con- siderable gains in recent years, this well-being is not evenly shared among different so- cioeconomic groups and between men and women. The majority of the indicators used to measure income based socio-economic health inequalities in Canada (by Canadian Insti- tute for Health Information) suggest that health inequality either persisted or increased between 2001 and 2013. Population aging might explain such findings because socioeco- nomic health inequality varies across the age groups and changing age distribution might have some impact on overall socioeconomic health inequality.
This paper uses National Population Health Survey (NPHS) of 1995-1996, different waves of Canadian Community Health Survey (CCHS) between 2001 and 2014 to look at the association between the
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