TORONTO, Feb. 27, 2013 /CNW/ - Prince Edward Islanders carry a $14
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 Healthcare for an Aging Population: Prince
Edward Island's $14 Billion Healthcare Glacier," authors Colin Busby
and William B.P. Robson recommend that the province prefund selected
healthcare services and benchmark against other provinces to get better
health bang for their tax bucks.
"Publicly funded healthcare's claim on provincial resources continues to
rise in Prince Edward Island," said Colin Busby. "Our projections show
the share of demographically sensitive programs - healthcare and
education - rising from 20.3 percent of provincial GDP today to 32.0
percent over the next five decades. The implicit liability amounts to
$15 billion (of which $14 billion is for healthcare alone) or about
$99,000 per Islander. Meeting these demands from its own resources
would require the province to tax a higher share of provincial income
in the future," added Busby.
The study projects Prince Edward Island'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 Prince Edward Island spends less than
most provinces on physicians and drugs, it spends much more on
administration. Having administration costs in line with the national
average, for example, would lower its spending by some $14 million
"Comparing bang-for-buck in these areas with other provinces could help
Prince Edward Island deliver quality care without compromising other
fiscal goals, such as fair tax rates for tomorrow's working
population," commented William Robson.
For the report go to: http://www.cdhowe.org/managing-healthcare-for-an-aging-population-prince-edward-islands-14-billion-healthcare-glacier/20776
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.