Financing the Health Care System. Is Long-term Sustainability Possible?
Canadian Centre for Policy Alternatives - December 15, 2008
Sean Burnett
Available online as PDF [15p.] at:
“… The report analyzes three indicators of sustainability: the ratio of total health care spending to Gross Domestic Product (GDP), the ratio of public spending on health care to GDP and the ratio of government health expenditures to total government revenue. ….”
“…..The Analysis of Health Care Expenditures focuses on expenditures for health care as a determinate of sustainability. The first part looks at historical trends in spending, followed by estimated cost drivers and the expected influence these will have on total health care spending. Finally, financing options will be reviewed for their impact on public spending.
In a recent paper Ruggeri (2006) analysed sustainability of health care. He suggests there are several indicators of sustainability with three being the most useful:
1 The ratio of total health care spending to GDP.
2 The ratio of public spending on health care to GDP.
3 The ratio of government health expenditures to total government revenue.
These indicators provide a framework to determine sustainability using additional data to the original Ruggeri study. The chosen indicators are important because they can be used to refute claims by opponents of the public health care system that it is in fiscal crisis….”
Content
Introduction
Categories of Health Spending
History of Fiscal Federalism
Moving Towards a “Two-Tier” System
Analysis of Health Care Expenditures
The Impact of Future Costs on Sustainability
Not a Public Health Care Fiscal Crisis
Policy Recommendations
Avoid Privatization
Reform the Pu
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