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TALKING HEALTH CARE FINANCING – Surrounded by Yukon Premier Sandy Silver (left), Northwest Territories Premier Bob McLeod (second from right) and provincial health and finance ministers, P.E.I. Premier Wade MacLauchlan speaks about health funding following a meeting with their federal counterparts in Ottawa. THE CANADIAN PRESS/Adrian Wyld

Premier back with no health funding deal

The premier and minister of health and social services return to Whitehorse today empty-handed, with no new health care deal to gift Yukoners.

By Sidney Cohen on December 20, 2016

The premier and minister of health and social services return to Whitehorse today empty-handed, with no new health care deal to gift Yukoners.

Talks in Ottawa came to an unsatisfactory end Monday.

Provincial and territorial ministers said the federal government refused to negotiate, and federal Health Minister Jane Philpott said the provinces and territories turned down a perfectly good offer.

Premier Sandy Silver, who is also the minister of finance, and Pauline Frost were both in Ottawa for the talks.

Silver said for the Yukon, the difference between the federal options and what the provinces were asking for is nominal.

Changes to the health transfer, which is doled out on a per capita basis, have a greater impact on larger jurisdictions, he said.

“‘Look, if you need unity, then we’ll be there for unity’s sake’; that’s what we said to the provinces,” Silver over the phone at noon today from the Vancouver airport.

To federal Finance Minister Bill Morneau, Silver said, “This is a relatively small amount in the differences, in the thresholds, so we want to talk to you about THIF (Territorial Health Investment Fund).”

In addition to the Canada Health Transfer, the territories get an annual parcel of federal funds through the Territorial Health Investment Fund, said Pat Living, a spokesperson for the Yukon’s Department of Health and Social Services.

Unlike the Canada Health Transfer, which jurisdictions can spend as they please as long as its health-related, the THIF is targeted at specific, regional health initiatives. In the Yukon, the last cheque went toward chronic disease treatment and mental health, said Living.

THIF is separate and distinct from the Canada Health Transfer and the Territorial Formula Financing payment, the annual, unconditional sum the territories get from Ottawa each year.

Silver said the Yukon’s Liberal government wants more control over how THIF is allocated, and that Morneau is open to talking about it.

THIF was established in 2004 and is renegotiated every three years. It’s set to expire at the end of March 2017.

Silver told Morneau he wants THIF funding to, at least, continue at its current level, if not rise. He did not however, have specific dollar increase in mind.

“It’s more that we have specific needs... fentanyl is now reaching the Yukon as well, so every region has its unique considerations.”

On average, the territory has received about $4.3 million a year for Yukon-specific projects, and additional funds for medical travel as part of THIF, said Living.

In 2016-17, the Yukon got $600,000 to help offset the costs of sending Yukoners to Whitehorse, or down south for treatment.

The federal government used to split health care spending with the provinces and territories 50/50, said Silver, but that doesn’t happen anymore.

“There’s lots of emerging health concerns, whether it be new technologies or new issues, the current status quo is not enough,” he said.

The Canada Health transfer is the sum of money allocated to each province and territory to spend on health care.

Since 2004, the transfer payment has grown each year by six per cent.

The previous Stephen Harper government changed the formula in 2011 so that starting in the 2016-17 fiscal year, the health transfer would rise according to a rolling, three-year average of the nominal GDP, or by three per cent per year, depending which was higher.

Unsurprisingly, the provinces and territories aren’t thrilled with the Conservative plan.

Last Friday, Ottawa offered to increase the health transfer to 3.5 per cent per year with an extra $8 billion over 10 years for mental health and home care.

According to media reports, the provinces expressed the worry that they’d be on the line to supplement mental health and home care funding when the decade is up. They also asked for a 5.2 per cent annual increase to the health transfer.

Philpott came back with a proposed 3.5 per cent escalator for five years, with the next five years to be decided at a later date, and $11.5 billion over 10 years for home care and mental health.

Also on the table was $544 million over five years for prescription drugs and “health innovation.”

But with no agreement reached by the end of the day Monday, the transfer payouts will default to the three per cent increase previously slated for April 2017.

The additional federal funds for mental health and home care are still on the table, said Silver, “but (Ottawa is) perplexed as to how they’re going to spend that money now.”

“The ball’s kind of in their court,” he said.

It’s possible, Silver said, that the health care debate will roll over to the next first ministers’ meeting.

“Everybody needs more money, is basically it,” he said.

The provinces argued that Ottawa’s proposals amounted to less federal health spending in the long run, said Silver, and the feds said their offer is more money than is currently spent on health care.

“It’s fun with numbers,” Silver told the Star.

The Yukon is set to receive $38 million for health care in 2017-18, $1 million more than the previous year.

This is in addition to $14 million it will get from the Canada Social Transfer and $919 million that comprises the Territorial Formula Financing payment.

All told, the territory will get $972 million in transfers from Ottawa in the year ahead.

Last year, the territory received a total of $946 million in federal dollars.

Speaking to the Yukon Medical Association last month, Dr. Granger Avery, the president of the Canadian Medical Association, recommended additional funding for jurisdictions with greater proportions of seniors.

Silver said he “absolutely” agrees with Avery’s position.

See related coverage.

Comments (9)

Up 12 Down 5

June Jackson on Dec 22, 2016 at 4:22 pm

Just sayin': I saw the page that quoted a 30 billion dollar deficit, but the newest figure is $34 Billion, expected to rise to 180 billion before junior is finished. At this moment the biggest tax dollar waste is coming out of the PMO. As you pointed out, travel and giving our money away. http://www.huffingtonpost.ca/2016/10/13/canada-deficit-forecast-td-bank_n_12468918.html If you have more current info please post URL, I like to follow these.

Financially Ottawa is doing so badly, that I am not sure Silver could have done any better. None of the provinces walked away with agreements because Liberal Ottawa refused to deal...they simply would not negotiate...and they don't have to..they have the majority... All Canadians will do what we are told to do...we have no choice... http://www.cbc.ca/news/politics/health-accord-meeting-1.3903508 I think Trudeau has been and continues to be very foolish.

The Pasloski government had to go.... Silver, and Yukon liberals have barely had a chance to find their chairs, so I am withholding my opinion on their performance for a while. I'm trying to think of ways they could be worse than the last Yukon Party government..and I can't. No party could do worse. Hmmm..maybe I'm wrong.. maybe NDP would have done worse.. Notley in Alberta had this one chance to influence how Canadians felt about the NDP..all of Canada watching her, judging party performance... I'm pretty sure Alberta will be singing Happy Trails to her at the next election. http://globalnews.ca/news/3132049/premier-notley-facing-criticism-for-taking-a-bus-comment-on-carbon-tax-impact/ just another nail...

As usual, I speak only for myself.

Up 20 Down 1

ralpH on Dec 21, 2016 at 5:07 pm

Just look at the Health and Social services phone directory. So many levels of bureaucracy. Add the Hospital Corporation layers, on top of that the abuse that exists through hypochondriac clients that should be called out for their unnecessary exposure to services and medication. Just cleaning up the fore mentioned items would cut costs one third I believe.

Up 29 Down 18

Lost in the Yukon on Dec 21, 2016 at 8:47 am

Sandy "Sunny Ways: Silver will be a weak leader and this is another demonstration and strike three. Strike one was not swiftly and decisively dealing with the problems caused by his candidate in Whitehorse Center; Strike two was his Cabinet selections especially for Health; and now Strike three, telling the Feds that "it's okay, we're close". Hang on folks this is going to be a leaderless next few years until they have another open revolt like last time.

Up 29 Down 10

Just Say'in on Dec 20, 2016 at 11:27 pm

Maybe, just Maybe if Trudeau would quit traveling around the world giving our money away, we could look after our beloved Healthcare.

Up 27 Down 16

Ryan on Dec 20, 2016 at 11:20 pm

Not a good start as Premier, Silver....hope this ain't a sign of things to come.

Up 26 Down 9

Just Say'in on Dec 20, 2016 at 10:53 pm

So now we have a Lib. MP and a Lib. Prem. Trudeau doesn't have to buy our favour, he already owns it. We are doomed.

So let's amp up our GDP as the plan calls for and we will get more. Harper had it correct you will get more if you earn it. What a novel idea.

Up 25 Down 9

Just Say'in on Dec 20, 2016 at 10:50 pm

Oh Look. Justin is running out of money. Imagine that. He just figured it out. 30 Billion ( that is 30,000 Million ) in the hole in the first year and revenues in the tank.

Up 26 Down 18

Nile on Dec 20, 2016 at 9:55 pm

Just another example that Sandy and his Libs have no idea how to play with the big boys.

Up 18 Down 17

jc on Dec 20, 2016 at 5:29 pm

With all the immigrants - illegal and otherwise, and refugees using up so much of our health benefits, not to mention financing turning people into the opposite sex etc, there is not much money left in the kitty. However, I'm surprised the Liberal government - who by the way believe Canada doesn't need a military because the U.S.A is doing such a great job protecting us - hasn't tapped the Military Bank of Canada like they so often do. Guess there's no money left in the account to suck out.

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