Canadian Health Ministers Warn of $1.2 Billion Funding Cliff for Mental Health and Home Care
Provincial and territorial health ministers are urging the federal government to renew targeted funding agreements for mental health, addictions, and home care before they expire in 2027, warning that a projected $1.2 billion annual loss would harm patients and health-care jobs.
Health ministers from across Canada are calling on the federal government to renew dedicated funding agreements for mental health, addictions, and home care, warning that their expiration will create a "fiscal cliff" for provincial health budgets. The ministers say failing to extend the agreements will have profound negative effects on patients and health-care jobs.
If the agreements are not renewed, provinces and territories face an expected loss of $1.2 billion annually beginning next March. In its 2023 budget, the federal government pledged a total of $200 billion in additional health funding over 10 years. Of that pledge, $4.8 billion was set aside over four years for improvements to home care, community care, and mental health and addiction services, with that funding scheduled to end in March 2027.
Other targeted allocations are also approaching their end dates. Another $3 billion designated for long-term care safety is set to sunset in 2026, while $1.7 billion allocated for personal support worker wages will be paid out by 2028. Additionally, the current guaranteed annual growth rate for the Canada Health Transfer is 5 per cent until 2028, after which it drops to a minimum annual growth rate of 3 per cent.
Manitoba Health Minister Uzoma Asagwara stated that every single health minister across the country is unified in calling for continued dedicated funding. The ministers argue that the loss of targeted dollars would reduce access to life-saving mental health and home care services.
Marion Cooper, president of the Canadian Mental Health Association, noted that dedicated funding has led to programs such as youth interventions and caregiver support. She said a reduction would be problematic given significant existing need.
Federal Health Minister Marjorie Michel and Finance Minister François-Philippe Champagne declined to take part in a meeting held earlier this week where provincial and territorial counterparts discussed the issue. Michel plans to meet with her provincial counterparts later this month.