Understanding the Canadian health care system

As the debate over health care reform in the United States rages on, there have been many comparisons made to the health care system in Canada. But what exactly is the Canadian system?

Canada’s health care system is a publicly financed and administered health care system. It is not a federal system but is composed of 13 interlocking provincial and territorial health insurance plans.

Health care in Canada is designed to provide all Canadian residents reasonable access to medically necessary hospital and physician services. These services are provided without direct charge to the patient on a prepaid basis for those holding a Canada Health Card.

Canada’s national health insurance plan is sometimes referred to as “Medicare.”   Responsibility for Canada’s health care system is shared between the federal government and the provincial and territorial governments. All of the plans share certain basic principles. These principles are set out by the Canada Health Act (CHA).

The CHA deals with how the system is financed. Because of the constitutional division of powers among levels of government, adherence to CHA conditions is voluntary. However, each provincial and territorial plan must satisfy the conditions set forth by the CHA in order to be paid their full share of the federal contribution.

Provincial and territorial governments are responsible for the management, organization and delivery of health services for their residents. 

There is considerable variation across the provinces/territories as to the extent to which such costs as outpatient prescription drugs, physical therapy, long-term care, home care, dental care and even ambulance services are covered
 

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