TORONTO, Feb. 13, 2013 /CNW/ - Nova Scotians carry a $99 billion fiscal
burden - the higher tax bill for increased healthcare costs over the
next half-century - and should prepare now for the coming demographic
squeeze, says a report released today from the C.D. Howe Institute. In
"Managing the Cost of Healthcare for an Aging Population: Nova Scotia's
Healthcare Glacier," authors Colin Busby and William B.P. Robson
recommend that Nova Scotia prefund selected healthcare services and
benchmark against other provinces to get better health bang for their
tax bucks, particularly with regard to its high spending on drugs, and
nursing and residential care.
"Our projections show the share of demographically sensitive programs,
including healthcare, education and other age-based programs, rising
from 18.5 percent of provincial GDP today to 33.0 percent over the next
five decades, said Colin Busby. "To meet these demands from its own
resources, Nova Scotia would have to increase the tax bite from incomes
by 70 percent," added Busby.
The study projects Nova Scotia's population and the impact of
demographic change on government revenues and programs. Among its
Prefunding: finance selected healthcare programs similarly to the Canada
Pension Plan, which converted from pay-as-you-go to a model in which a
portion of premiums collected from participants today prefunds their
own benefits in the future.
Benchmarking best practices: while Nova Scotia spends less than most
provinces on capital and "public health," which includes health
promotion activities, it spends more on drugs than any other province.
It also has a relatively high budget for "other institutions," such as
nursing homes and residential care homes.
"Comparing bang-for-buck in these areas with other provinces could help
Nova Scotia deliver quality care without compromising other fiscal
goals, notably fair tax rates for tomorrow's working population,"
commented William Robson.
For the report go to: http://www.cdhowe.org/managing-the-cost-of-healthcare-for-an-aging-population-nova-scotias-healthcare-glacier/20662
SOURCE: C.D. Howe Institute
For further information:
Colin Busby, Senior Policy Analyst, or William Robson, President and CEO, C.D. Howe Institute; 1-416-865-1904; email: email@example.com.