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Health care insurance costs typical Canadian family almost $12,000 per year

A typical Canadian family of four will pay $11,735 for public health care insurance in 2015, finds a new study released last week by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

A typical Canadian family of four will pay $11,735 for public health care insurance in 2015, finds a new study released last week by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

The study, The Price of Public Health Care Insurance, helps Canadians better understands the cost of public health care for them and their families.

鈥淐ontrary to what many believe, health care in Canada isn鈥檛 free. While Canadians may not pay directly for medical services, they pay a substantial amount of money for health care through their taxes,鈥 said Bacchus Barua, study co-author and senior economist in the Fraser Institute鈥檚 Centre for Health Policy Studies.

Most Canadians are unaware of the true cost of health care because they never see a bill for medical services and only pay a small so-called 鈥減remium鈥 for health-insurance (in provinces that impose them).

Moreover, general government revenue鈥攏ot a dedicated tax鈥攆unds health care, making it difficult for Canadians to decipher how much of their tax dollars actually go towards health insurance. The Price of Public Health Care Insurance answers that question, using data from Statistics Canada and the Canadian Institute for Health Information.

The study finds the average Canadian family with two parents and two children earning $119,082 will pay $11,735 for public health care insurance in 2015. A single individual earning $42,244 can expect to pay $4,222.

The study also tracks the cost of health care insurance over time: between 2005 and 2015, the cost of health care for the average Canadian family (all family types) increased by 48.5 per cent, dwarfing increases in income (30.8 per cent), shelter (35.9 per cent) and food (18.2 per cent).

鈥淥ver the past decade, the cost of health care in Canada has grown 1.6 times faster than average income,鈥 Barua said.

鈥淭he real cost of public health care insurance for different family compositions should be a fundamental component of any debate about health care in Canada. Once Canadians know how much they actually pay for health care through taxes, they will be in a better position to decide if the system delivers good value for their money.鈥

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