Improving Access to Canadian Health Care: The Role of Tax Policies

Equitable and timely access to essential health services, products, and programs helps ensure population health and wellness in Canada, which leads to a healthier workforce. Despite our predominantly publically funded health care system, out-of-pocket costs—such as those for dental care and prescription drugs—pose a significant financial burden for many Canadians, particularly elderly, low-income, self-employed or unemployed people.

Governments have recognized a need to alleviate out-of-pocket costs for health care through fiscal or tax policies. This research assesses several of these, including the medical expense tax credit and the children’s fitness tax credit. It examines their role in improving access to uninsured or underinsured health care services, and their costs in terms of foregone federal revenues. It also discusses the potential impact of implementing a health-related tax deduction in Canada. All in all, it is unclear whether health-related fiscal policies can be leveraged to improve access to health care.