Government of Canada Announces Reimbursements and Deductions under the Canada Health Act

OTTAWA, ON, March 21, 2024 /CNW/ – Upholding the Canada Health Act (CHA) remains a critical way to protect Canada’s health care system and ensure Canadians have equitable access to medically necessary care based on their needs, not their ability to pay.

Today, the Honourable Mark Holland, Minister of Health, announced mandatory Canada Health Transfer (CHT) deductions totalling over $79 million in response to patient charges during 2021-2022 for medically necessary services that, under the CHA, should be accessible to patients without out-of-pocket costs.

The goal of the Canada Health Act and mandatory Canada Health Transfer (CHT) deductions has always been to ensure patients do not pay out of pocket for medically necessary services. The federal government introduced the CHA Reimbursement Policy in 2018, so that when provinces and territories take action to eliminate patient charges and the underlying circumstances that led to them, they are reimbursed these mandatory deductions.

As a result of provinces and territories (PTs) working with the federal government to put a stop to patient charges for medically necessary services, British Columbia, Alberta, Manitoba, Ontario, Quebec, and Newfoundland and Labrador have received reimbursements of deductions under the Reimbursement Policy, totalling over $90 million. The reimbursements recognize the work being done to protect patients from inappropriate charges and improve universal access to health care services. As provinces and territories take additional action to eliminate patient charges, they will be eligible for additional reimbursements.

Canadians and their families deserve timely access to the health care services they need, and they expect their governments to work together to find immediate and longer-term solutions to these challenges. The federal government will continue working closely with provinces and territories so all Canadians have equitable access to medically necessary care based on need, not their ability to pay.

“Our government will always protect Canada’s public health care system. No Canadian should ever pay out of pocket for medically necessary services covered under the Canada Health Act. By working with provinces and territories, these Canada Health Transfer reimbursements will see money that was deducted due to patient charges on Canadians flow to provinces and territories to invest in their healthcare systems. Together, we can deliver the public health care Canadians need.”

The Honourable Mark Holland
Minister of Health

Since 2015, close to $267 million has been deducted from CHT payments for non-compliance with the Canada Health Act (CHA).Under the Canada Health Act Extra-billing and User Charges Information Regulations, provinces and territories are required to report annually to Health Canada on extra-billing and user charges levied in the fiscal year two years prior to the current fiscal year. As such, the current reporting cycle is for charges levied during fiscal year 2021-2022.Mandatory CHT deductions for patient charges for medically necessary services were required for British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia and Newfoundland and Labrador.Since 2018, when the Reimbursement Policy came into effect, over $175 million has been reimbursed to provinces under the Reimbursement Policy.CHT deductions taken in March 2024 for patient charges that occurred during the 2021-2022 fiscal year, and any reimbursements issued will be included in the 2023-2024 Canada Health Act Annual Report, which will be tabled in February 2025.The Canada Health Act Annual Reports include Reimbursement Action Plans that outline what PTs have done to eliminate patient charges. The most recent Annual Report (2022-23) was published in February 2024.

Backgrounder: Canada Health Transfer Deductions and Reimbursements – March 2024Canada Health ActCanada Health Act Annual Report 2022-2023Canada Health Transfer

SOURCE Health Canada (HC)