FREDERICTON, NB, July 2, 2013 /CNW/ - An actuarial study on future
healthcare expenses and resource needs, conducted by the Canadian
Institute of Actuaries (CIA) in conjunction with the New Brunswick
Health Council (NBHC), was delivered on June 27 to officials of the
Department of Health, NBHC, Vitalité Health Network, FacilicorpNB and
Ambulance New Brunswick by CIA President Jacques Lafrance and NBHC
Chief Executive Officer Stéphane Robichaud.
M. Lafrance said, "Canada's actuaries were involved in the design of
Medicare in the mid-1960s, and we took on this project to demonstrate
that actuaries' skills, talents, and abilities could be of use to the
system once again.
"Across the world, healthcare costs are escalating and projected to grow
at a rapid pace partly due to aging populations. Despite the
implementation of many promising initiatives over the last decade,
healthcare remains a top national concern. Actuarial expertise and
methods can help identify areas to lower health care costs.
"This joint venture was a positive one for the CIA, the NBHC, the
government, and New Brunswickers."
Using data from the Canadian Institute for Health Information (CIHI) and
from the NBHC, a model was developed to project healthcare expenses for
New Brunswick to 2020. It took into account demographic projections of
the province's population, and developed trend factors to reflect the
various healthcare component costs. The impact of lifestyle factors on
these costs was also correlated.
One important result projects that without changes in the system, the
total cost of healthcare in New Brunswick will increase from $2.8
billion in 2009 to $4.6 billion in 2020. On a per capita basis, this
represents an increase from $3,711 per person to $5,976, or 4.4% per
M. Robichaud said, "Three main factors drive this increase: a
projected 2 percent annual price inflation in medical costs, higher
costs brought on by the aging of the population, and increasing
utilization of the system brought on by lifestyles and other factors."
The Canadian Institute of Actuaries is the national organization of the actuarial profession. Actuaries
employ their specialized knowledge of the mathematics of finance,
statistics, and risk theory on problems faced by pension plans,
government regulators, insurance companies (both life and
property/casualty), financial institutions, social programs, and
The New Brunswick Health Council was created by the Government of New Brunswick to promote and improve
health system performance. It engages citizens in ongoing dialogue on
improving health services, and monitors and reports on health system
performance to the public and health system partners.
SOURCE: Canadian Institute of Actuaries
For further information:
Josée Racette, the CIA's project manager, communications and public affairs, at 613-236-8196 ext. 107, or e-mail email@example.com;
Christine Paré, the NBHC's Director of Communications, at 506-869-6714 or e-mail firstname.lastname@example.org