Sunday, November 14, 2010

Why do we talk about health care spending as a percentage of the overall budget?

You often hear health care costs spoken of as a percentage of the provincial budget. The Globe & Mail has been doing a series on this recently, and a number of people have expressed concern that health care represents too high a percentage of the budget.

I have a simple solution to that problem: provide free university tuition for everyone, double all social assistance rates, reimburse housing costs for all households earning under the poverty line, and increase taxes accordingly.

That doesn't address health care at all, does it? The end result would be exactly the same health care we have now at exactly the same cost. But health care would be a smaller percentage of the budget, because the budget as a whole would be bigger.

Looking at health care as a percentage of the budget doesn't address the number of dollars being spent, whether people are getting care we need, whether the aspects of health care not covered by OHIP are affordable, or whether we're getting good value for our money. It is dependent on a wide range of factors that are completely unrelated to health care.

So why do people keep talking about it this way?

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