Rising costs for food and housing have been widely discussed as major factors contributing to the affordability crisis. However, data from the consumer price index (CPI) reveals that the expenses related to maintaining good health have also significantly increased since overall inflation peaked in June 2022.
The surge in health-care expenses may not be as noticeable to many Canadians, as a portion of these costs are covered by the public health-care system, which is not factored into the CPI data. Additionally, typical out-of-pocket health expenditures may be sporadic, unlike regular expenses such as rent or groceries.
According to Jimmy Jean, vice president and chief economist at Desjardins Group, health-care prices have shown a notable upward trend in recent years, with projections indicating a further increase. Andrew Longhurst, a senior researcher at the Canadian Centre for Policy Alternatives (CCPA), emphasized that the growth in health-care costs is expected to continue, particularly due to aging demographics and provincial governments implementing fiscal restraint measures.
Although the overall inflation rate, known as all-items CPI, has risen by approximately 11% since June 2022, the category of health and personal care has seen a more significant increase of over 15% during the same period. Specifically, health-care services such as eye exams, physiotherapy, and basic dental care have experienced an 18.5% rise, nearly on par with food price increases.
Dental and eye care services have witnessed a 20% price hike since June 2022, highlighting a divide in the health-care sector where costs are predominantly controlled on the private side. Longhurst pointed out that these areas lack public provision and face minimal constraints on cost regulation.
Statistics Canada data indicates that health-care service prices have consistently outpaced overall inflation, with health-care inflation exceeding general inflation 85% of the time over the past two decades. This trend is attributed to the nature of health and dental services, where skilled labor costs contribute significantly to expenses.
Private health-care spending has been increasing rapidly, with Canadians bearing a growing portion of the financial burden. Longhurst raised concerns about the widening disparities in access to care based on income levels, emphasizing the importance of government intervention to address these gaps and ensure equitable access to essential health services.