Just when you thought health care was safe from two-tier profiteers and politicians willing to let them in the front door, along comes the Supreme Court of Canada to open the back gate.
Last month, in a 4-3 decision, the Supreme Court ruled Quebec’s ban on private health insurance violates citizens’ rights because long waiting lists are threatening lives. For some, like Alberta Premier Ralph Klein, the decision is good news because it allows private-sector investment in the health system. For others, who support the current model, the decision threatens the principle of quality publicly funded health care for all. For business, the decision could be costly.
One of the biggest advantages Canadian businesses have over their American counterparts is a national health-care system that foots the bill for keeping the workforce alive and healthy. It’s a different case in the United States. Take the auto industry, where employee benefit budgets rival the health spending of most nations. General Motors, Ford and DaimlerChrysler spend a combined $11.5 billion providing health care for two million workers, family members and retirees. It’s a financial burden that adds as much as $1,800 to the cost of a new car, and a strong reason for locating manufacturing in Ontario instead of Michigan.
It isn’t easy competing with America’s high productivity levels and economies of scale. Health care is one area where Canada has an edge. While shorter waiting lists are needed, Canada can solve this problem without changing the public system.
Waiting lists exist for two reasons: not enough funds for equipment, and not enough funds for health professionals. Restructuring the system for efficiency will free up some funds, but increased government spending is also necessary. While the Supreme Court sees waiting lists as a reason to allow private insurance, it’s difficult to see how that would reduce delays for the average Canadian.
It’s one thing for private investors to buy some equipment and set up shop, but where will staff come from? Will private-sector health providers be starting medical schools and nursing programs? Will they actively recruit foreign-trained professionals? Or will they recruit professionals currently working in the public system, thereby further increasing the waiting lists the Supreme Court is concerned about?
Likely the latter. And as private-sector providers become the only option for timely care, employers can expect staff to demand these benefits. It will start with the need to pay for private insurance in order to retain top executives. Soon lower-level managers, unions and the rank-and-file will want in, too. And then Canadian benefit plan sponsors will long for the days when prescription drugs, eyes glasses and dental plans were “threatening” the bottom line.
As for the Supreme Court’s 4-3 ruling, one vote one way or the other by an unelected body should not be the basis of national social policy. When it comes to protecting the health system, the provinces are well-advised to use the notwithstanding clause that was created to override the Charter of Rights and Freedoms in rare cases. This is one such moment.
Last month, in a 4-3 decision, the Supreme Court ruled Quebec’s ban on private health insurance violates citizens’ rights because long waiting lists are threatening lives. For some, like Alberta Premier Ralph Klein, the decision is good news because it allows private-sector investment in the health system. For others, who support the current model, the decision threatens the principle of quality publicly funded health care for all. For business, the decision could be costly.
One of the biggest advantages Canadian businesses have over their American counterparts is a national health-care system that foots the bill for keeping the workforce alive and healthy. It’s a different case in the United States. Take the auto industry, where employee benefit budgets rival the health spending of most nations. General Motors, Ford and DaimlerChrysler spend a combined $11.5 billion providing health care for two million workers, family members and retirees. It’s a financial burden that adds as much as $1,800 to the cost of a new car, and a strong reason for locating manufacturing in Ontario instead of Michigan.
It isn’t easy competing with America’s high productivity levels and economies of scale. Health care is one area where Canada has an edge. While shorter waiting lists are needed, Canada can solve this problem without changing the public system.
Waiting lists exist for two reasons: not enough funds for equipment, and not enough funds for health professionals. Restructuring the system for efficiency will free up some funds, but increased government spending is also necessary. While the Supreme Court sees waiting lists as a reason to allow private insurance, it’s difficult to see how that would reduce delays for the average Canadian.
It’s one thing for private investors to buy some equipment and set up shop, but where will staff come from? Will private-sector health providers be starting medical schools and nursing programs? Will they actively recruit foreign-trained professionals? Or will they recruit professionals currently working in the public system, thereby further increasing the waiting lists the Supreme Court is concerned about?
Likely the latter. And as private-sector providers become the only option for timely care, employers can expect staff to demand these benefits. It will start with the need to pay for private insurance in order to retain top executives. Soon lower-level managers, unions and the rank-and-file will want in, too. And then Canadian benefit plan sponsors will long for the days when prescription drugs, eyes glasses and dental plans were “threatening” the bottom line.
As for the Supreme Court’s 4-3 ruling, one vote one way or the other by an unelected body should not be the basis of national social policy. When it comes to protecting the health system, the provinces are well-advised to use the notwithstanding clause that was created to override the Charter of Rights and Freedoms in rare cases. This is one such moment.
