Canada Health Transfer

(see also Canada Social Transfer)

• The Canada Health Transfer (CHT) is the primary federal transfer to provinces and territories in support of health care.

• The CHT is made up of both a cash transfer and a tax transfer. CHT cash and tax transfers will be about $31.8 billion in 2006-07, of which $20.1 billion in cash and $11.7 billion in tax transfers.

• CHT cash levels are currently set in legislation up to 2013-14, providing a predictable, sustainable, and growing funding framework to provinces and territories. CHT cash transfers will reach $30.3 billion in 2013-14. Tax transfers will continue to grow in line with the economy.

• CHT support is allocated to provinces and territories on an equal per capita basis to ensure equal support for all Canadians regardless of their place of residence.

• The CHT supports the Government’s commitment to maintain the national criteria and conditions of the Canada Health Act (comprehensiveness, universality, portability, accessibility and public administration).

• As a result of the September 2004 First Ministers’ Meeting, the CHT has been strengthened, ensuring both an appropriate base level of federal support for health, as well as stability, predictability and growth in federal transfers for the future.

• To accelerate and broaden health renewal and reform, the Government of Canada has taken several steps to strengthen the CHT:

• Increasing the CHT base to $19 billion in 2005-06, exceeding that recommended in the Romanow Report;
• Applying an escalator of six per cent annually to the CHT effective 2006-07 to provide predictable growth in federal support for health.

• As a result of these changes to the CHT, transfers to provinces and territories for health will increase by more than $35 billion between 2004-05 and 2013-14.

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