How much does healthcare cost the average Canadian? (2024)

FAQs

How much does healthcare cost the average Canadian? ›

Total health spending in Canada is expected to reach $331 billion in 2022, or $8,563 per Canadian. i This follows a surge in spending due to the COVID-19 pandemic, particularly in 2020.

How much do Canadians pay in taxes for public healthcare provision? A new analysis of data by the Fraser Institute shows that an average Canadian family with two adults and two children and an income of $169,296 will pay an estimated $16,950 in 2023, while a couple with no dependent children will pay $16,162.

In 2021, the out-of-pocket health care payments in Canada are projected to come to an average of 959 Canadian dollars per capita, an increase from the previous year.

How much does health insurance in Canada cost? Private health insurance in Canada costs about $756 annually or about $63 per month, according to the latest figures gathered by the Canadian Institute for Health Information (CIHI).

How is Public Healthcare in Canada Paid For? Public healthcare is free because patients are not required to pay any fees to receive medical attention at a healthcare facility. However, public health care in Canada is funded by a tax paid by Canadian citizens and permanent residents.

Canadian healthcare is also less expensive. The cost of healthcare in the United States—both for individuals and the government—is by far the highest in the world, yet the United States also has the worst health outcomes overall of any high-income nation.

Several factors are driving the rising costs of healthcare in Canada. An aging population requiring more care, expensive new technologies and drugs, increased chronic disease rates, administrative inefficiencies, and more have all contributed to escalating healthcare costs across the country.

In Canada, families spend an average of $4,000 CAD per year on private or supplemental health insurance. However, do keep in mind that this cost would vary depending on factors such as the overall coverage, deductible, number of dependents, age, health history, and province/territory of residence.

Medication spending per capita in Canada by province 2023

In 2023, drug expenditures in Ontario averaged at some 1,259 Canadian dollars per person. Per capita health expenditures tend to differ among provinces partially due to differences in age distribution.

Canadian households spent an average of $689 on personal care products in 2021, including makeup, skin care, manicure and fragrance products ($198), hair care products ($89), and personal deodorants ($19).

Is healthcare free in Canada for immigrants? ›

Can Canadian immigrants get free healthcare? Eligibility for public health insurance extends to all Canadians, including natural citizens and newcomers to this country. However, in some provinces, newcomers are not eligible for healthcare coverage immediately upon arrival to Canada (more on waiting periods below).

Average Cost

For a typical employer-sponsored benefits package, which includes medical, optical, dental, life, AD&D (Accident Death & Dismemberment), and possibly disability, the cost is 5,000- 7,000 Canadian Dollars per annum or about 420-580 Canadian Dollars per month.

Key takeaways. Personal health insurance can be worth it if you aren't covered under a workplace benefits plan. That's because government health care plans may not cover certain expenses, and without coverage, you'll have to pay these out-of-pocket.

Average Canadian family will pay almost $16,000 for health care this year. As inflation continues upward, many Canadians worry about the increasing cost of living and their household finances. However, there's a crucial expense line missing—the amount we pay for public health care.

In 2021/22, an estimated 25.7 per- cent of tax revenues (income) will be spent on health care (Statistics Canada, 2021a, 2021d, and 2021e; CIHI, 2021; authors' calculations).

In a study published in BioMed Central's journal Population Health Metrics they said Canadians can expect to live until 79.7 years of age, versus 77.2 years for Americans. A healthy 19-year-old Canadian can expect to have 52 more years of perfect health versus 49.3 more years for Americans.

While the tax burden varies quite widely between both US states and Canadian provinces, in general, the US has significantly lower taxes overall than Canada does, albeit at the expense of less generous social welfare benefits - most glaringly being the (IMHO) embarrassing lack of a universal healthcare system.

Canadians pay out-of-pocket health costs close to what Americans pay, yet Canada's tax burden is 36 percent to 51 percent higher than America's. These extra taxes are largely driven by government health care costs.

Find out what the average Medical salary is

The average medical salary in Canada is $42,903 per year or $22 per hour. Entry-level positions start at $33,192 per year, while most experienced workers make up to $75,280 per year.