Prime Minister Justin Trudeau says that his government will increase federal healthcare transfers to the provinces by $196 billion over the next 10 years.
Trudeau made the offer to the premiers during a scheduled meeting held in Ottawa. However, of the nearly $200 billion, only about one-quarter (25%), or $49 billion, would be new spending.
Trudeau reportedly pledged an immediate and unconditional top-up of $2 billion to the Canada Health Transfer to ease pressure on hospitals and emergency departments.
The proposal includes a promise to increase the annual Canada Health Transfer over the next decade by another $17 billion above previous commitments.
An additional $25 billion will be sent over 10 years through one-on-one agreements with each province for four priority areas: family medicine, surgical backlogs, mental health and modernizing data-collection.
Trudeau said provinces will have to show plans for how they will spend taxpayer dollars and how they will measure progress and results.
Canada’s healthcare system has been under extreme strain since the COVID-19 pandemic began in March 2020.
