Provinces urge rethink on health cuts

Halving funding increases would cost Ontario $400M

Canada’s medicare system will be shortchanged $1billion next year unless the federal government reverses plans to cut funding increases in half, provincial and territorial health ministers warned Monday.

Forming a common front before a Tuesday meeting with their federal counterpart Jane Philpott, the ministers urged the new Liberal administration in Ottawa not to chop transfer payment hikes to 3 per cent from 6 per cent starting in 2017.

Following through with the cut — a unilateral decision by the previous Conservative government of Stephen Harper in 2011 — would mean $400 million less for Ontario and be a “huge blow” to patients, Ontario Health Minister Eric Hoskins told a news conference.

An increase of just 3 per cent in annual transfer payments from the federal government “simply isn’t sufficient to keep the lights on” in terms of maintaining the level of health care, he said.

Over the next 10 years, the cut means Ottawa would be spending $60 billion less on health care — money the provinces will have to make up if they hope to maintain current level of services, the provincial ministers said in a statement.

They called for the prime minister to suspend the cuts until he can meet with premiers and territorial leaders to reach a new agreement.

Meanwhile, Philpott has promised to spend $3 billion extra on home care and palliative care over the next four years, helping provinces with those costs as the population ages.

Hoskins said the provinces and territories, on average, now cover 80 per cent of costs in the health-care system.