Canada’s annual health care spending is expected to hit $372 billion this year, a new record high and a dramatic jump from the increases estimated for the previous two years.
The Canadian Institute for Health Information released its National health expenditure trends report on Thursday, detailing that total health spending is expected to cost around $9,054 per Canadian in 2024.
“It is anticipated that health expenditures will represent 12.4% of Canada’s gross domestic product (GDP) in 2024. Excluding the 2020 and 2021 pandemic period, this is the highest ratio ever reached,” reads the report.
“Total health care spending in Canada is expected to increase by 5.7% in 2024, after a rise of 4.5% in 2023 and 1.7% in 2022.”
Additionally, the latest Organisation for Economic Co-operation and Development data recorded for 2022 revealed that Canada had one of the highest per capita spending amounts when compared to other nations, at $8,119.
Of the 38 countries included in the OECD, only Sweden and France spent marginally more per capita on healthcare than Canada.
The organization noted that Canada’s health expenditures were outpacing economic growth and the trend is expected to continue as the country faces both a growing population and a large aging demographic.
The CIHI report also addressed Canada’s recent dental and pharmacare plans, which it said will further increase health-care spending as more people begin to use these services who could not previously afford them.
The 2024 report is based on data that has been finalized for 2022’s actual health expenditures, providing preliminary estimates for 2023 and 2024.
“Hospital expenditures are projected to increase by 6.3% in 2023 and 6.1% in 2024. Physician expenditures are projected to increase by 7.5% in 2023 and 4.4% in 2024. Total drug expenditures are projected to increase by 5.6% in 2023 and 3.8% in 2024,” reads the report.
“Total private-sector health expenditures are projected to increase by 6.2% in 2023 and 6.1% in 2024. Private-sector spending is composed mainly of out-of-pocket spending and private, voluntary health insurance payments.”
Expenditure trends and forecasts are based on national health budgets for the public sector and therefore may be subject to change.