Jane Philpott says 3% a 'reasonable escalator' for health-care spending

Health Minister Jane Philpott is hitting back at premiers who are concerned about theLiberal pledge to stick with the former Harper government's health-care spending formula, saying that more money for cash-strapped provinces isn't the only solution.

"Threeper cent is a reasonable escalator for next year," Philpott said of the planned hiketo health transfer payments.

"Threeper centisactuallysignificantly higher than thegrowthin health spending across the country, which averages anywhere from zeroto twoper cent."

Some provincial healthministers, including Quebec Health MinisterGatanBarrette, have said the increase isn'tenough, as it doesnot keep pace with population growthand the needs ofa rapidly aging population in some provinces.

Health-care spending has been constrained in recent years as most provinces have opted to rein in budget deficits left over from the last recession.

Barrette, who has been a thorn in the side of the federal government, objected to talkabout further spending efficiencies.

"It is the trap that the federal government is pushing us into," he told reporters in Ottawa. "We're not talking about the real thing that comes first funding."

Former finance minister Jim Flaherty unilaterally changed funding increases to either match the rate of GDP growth or three per cent a yearwhichever is greater. That marked anend to the six-per-cent annual escalator implemented under the last Liberal government. (The funding change will take effect next year.)

Prime Minister Justin Trudeau has tasked the Toronto-area health ministerwith penning a new health accordwith the provinces, and many premiers are pushing hard for more funding as part of those negotiations.

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The federal government has said that it will pump more money into the system including $3 billion for home care but itwants to look for greater efficiencies, rather than rejiggingthe funding escalator set by Flaherty.

Premiers demand meeting with PM

As first reported by CBC News, premiers have sent a letter to the prime ministertwo weeks ago, demanding a first ministersmeeting on health-care funding this fall, before they meet to discuss climate change.

The premiers said that if a meeting on health care is not possibleby mid-December, they want Trudeau to commit to extending six-per-centincreases to health-care transfers for at least another year.

Yukon Premier Darrell Pasloski, who is chair of the Council of the Federation, said Trudeauhas yet to respond to the most recentletter. The prime minister had responded to an earlier letter from July, he said.

"The prime minister reiterated his support for the federal, provincial, territorial ministers' work on renewing a health-careaccord," he told Rosemary Barton, host of CBC's Power & Politics, on Thursday evening.

Yukon premier wants a meeting with the federal government over health care

8 years ago

Duration 8:34

Darrell Pasloski is leading the charge as the provinces ask to sit down with the feds and talk health transfers.

Pasloski said he received the letter late yesterday. The premiers want talks about health care to be added to the agenda of the climate change meeting scheduled for late fall, he said.

"I think there's still an opportunity to ensure that this is an issue that can be brought forward and be a part of the agenda," he said."Because it doesn't matter where you live in this country, health care remains a priority for all Canadians."

A first ministers' meeting would be the best way to address the diverse health care needs in different regions, Pasloski said.

"Because our situations are unique across the country, I think that's why we need to have that conversationabout how exactly we do this. I think it's important to know that for the last four years, Canada's premiers have been working on innovation in health care."

Philpott said she understood whythe premiers are anxious for more money in "tough economic times," but said she knew nothing about the letter, as it was not addressed to her.

She has committed to holding a meeting with provincial and territorial health ministers on Oct. 19, she said, and that will be a chance to discuss innovation in the health-care system.

"We know that there's much that can be done inhealth care that doesn't require spending more money," she said."There's a lot of inefficiency, a lot of siloing, or fragmentation. Lots of experts, across the country, know that we can build more efficient systems. We're looking forward to innovation and building better models of care."

NDP Leader Tom Mulcair has also been critical of the government's plan to maintain Harper's health-care plan, saying Philpott is continuing a long-standing Liberal tendency of"dictating"to the provinces how to spend on health care.