British Columbians face a $415 billion tax bill for increased health care costs over the next 50 years to provide care for aging baby boomers, the C.D. Howe Institute said in a report in January.
The institute projects public health care spending will rise from 8% of GDP currently to 12.2% in 2035 and 16% in 2062. These rising costs will mean an almost inevitable increase in taxes.
BC is not the only province facing this challenge, nor the worst off. The institute calculated the long-term liability faced by all other provinces and concluded that Ontario’s bill reaches almost $1.4 trillion, Quebec’s bill amounts to $768 billion, and Alberta will owe $615 billion.
To alleviate these costs the institute suggests converting health care from a pay-as-you-go plan to prefunding future costs and considering income-based coverage.
The report can be viewed at www.cdhowe.org.
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