Question Period Note: Canada Health Transfer

• The Canada Health Transfer is our country’s largest federal transfer to provinces and territories. This year, our Government is providing over $43 billion through the transfer to support the delivery of health care services.

• The Government has been there from the beginning of the pandemic to ensure that health care systems receive the additional funding they need to manage COVID-19. This includes a $4 billion payment provided through the Canada Health Transfer this past summer.

• Once we are out of the pandemic, the Government will be there to discuss long-term health care funding with provinces and territories to ensure that Canadians continue to receive the care that they deserve.

If pressed on Canada Mental Health Transfer

• Canadians who struggle with mental health – many of whom have sacrificed so much this past year – deserve access to the services that they need no matter where they live in our country.

• That is why this government is committed to working with provinces and territories to ensure that mental health care is treated as a full and equal part of Canada’s universal public health care system.

Canada Health Transfer (CHT)
• The CHT is the largest major transfer to provinces and territories. It provides long-term predictable funding for health care and supports the principles of the Canada Health Act.
• Since 2017-18, the CHT has been legislated to grow in line with a three-year moving average of nominal Gross Domestic Product (GDP) growth, with total funding guaranteed to increase by at least 3.0 per cent annually. CHT payments are made on an equal per capita basis.
• Provinces and territories are not required to report to the Government on how CHT funds are disbursed.
Significant increase in federal health support
• In the decade prior to the pandemic (2010-11 to 2019-20), CHT growth exceeded that of provincial and territorial health expenditures (CHT grew on average by 5.1 per cent annually, compared to PT health expenditure growth of 3.8 per cent).
• The Government also provides significant funding for health care outside of the CHT. This includes through a number of bilateral agreements with provinces and territories, such as $11 billion over ten years to support better home care and mental health initiatives (started in 2017-18).
• Throughout the pandemic, federal spending on health care has increased significantly (both direct spending and transfers to provinces and territories). This includes:
o $13.8 billion of the nearly $20 billion Safe Restart Agreement went to support health care, including testing capacity and procurement of personal protective equipment;
o $9 billion to support vaccine procurement;
o $4.5 billion in one-time top-ups to the CHT to address immediate health system pressures; and
o $1 billion to support provincial and territorial immunization plans and rollout.

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