Alberta is currently trying to privatize healthcare services via Bill 11. Places with private healthcare tend to see high out-of-pocket costs. The USA is one of the countries with private healthcare services, and they have a high amount of medical debt. When healthcare is not publicly funded, people on tight budgets are most likely to suffer. Medical care can be expensive, and costs add up very quickly. If Alberta passes Bill 11, the unfortunate reality is that people might end up in medical debt.
What does Alberta’s Bill 11 propose?
Bill 11 is an Alberta bill that suggests a dual practice model. This means that doctors can work in the public system and also offer privately paid services. There are no details on prices or restrictions, as the bill has not been confirmed as law yet.
What does the government say?
The government is proposing that this will make medical care more accessible. While it may make care more accessible to the wealthy, it seems unlikely that the average Canadian will benefit the same way. The government says the new bill will reduce wait times. They also claim it will help attract and retain doctors because they’ll make more money through private healthcare costs.
How could this affect Canadians?
Increase out-of-pocket costs
The proposal is that people will be able to pay directly for faster access to procedures and medical attention. This is applicable for services across the spectrum, be it emergencies or elective surgeries. There are no set limits in the bill for how much private providers can charge. This means the bills could be quite high. If you’re paying out of pocket without private insurance, you might end up with a huge bill.
Change in drug coverage rules
Alberta’s Bill 11 is also attempting to change drug coverage rules. They’re trying to switch the order of responsibility for healthcare coverage. In their new bill, private or employer plans pay first, and then the public plan. This likely means employers will pay higher premiums, which means eventually the cost will be passed on to employees. Employees might then have to pay higher premiums, or higher copays, or get lower wages.
Increase reliance on workplace benefits
Since private or employer insurance would come first, it would start to become more important to many. Workplace benefits might get greater consideration when looking for jobs, eventually. The flipside is that people will be tied to a job because of the benefits and perks offered. This will make people more dependent on private employers. If healthcare remains fully funded on a public level, people would be less dependent on workplace benefits.
More wealth inequality
In this setup, wealthier patients can skip the line. However, lower-income Canadians may have to wait longer or face delays in care they can’t afford out of pocket. Some European countries have found that having more private healthcare available actually decreases how quickly someone can get access to and care in the public system. This makes it harder for people to get medical attention. A common argument is that doctors will be able to make more money this way. That could also be achieved by paying them a higher wage within the public healthcare system.
Can this lead to medical debt?
The Canada Health Act requires provinces to cover all medically necessary hospital and doctor services, without any direct charges. According to this act, provinces adding extra billing or fees may lose federal health transfers. Even so, emergency care, cancer care, ICU, and family doctors are expected to remain publicly funded.
If private options expand greatly for surgery, diagnostics, or access to specialists, people may feel pressured to spend a lot to get the treatment they need. Many Canadians may feel like they don’t have a choice but to opt for private. This can increase the chances of medical debt in the long run.
If workplace benefits become more important, insurance will likely become more expensive. This would mean higher premiums, deductibles, and copays. People without private insurance or workplace benefits could be disproportionately affected. It can also adversely affect gig workers, low-income seniors, and self-employed people. Delayed care can, of course, lead to difficult situations or outcomes. This may lead to more expensive treatment later, and/or lost wages.
How to avoid medical debt?
- Even if Bill 11 passes, the Alberta government will still have to continue public services. Visit your family doctor and emergency care as far as possible. They will remain publicly funded. You can ask for a referral to a specialist covered by the public system.
- You may have to take workplace benefits into greater consideration when looking for jobs.
- Look into private insurance, see whether it makes sense for your situation.
- Build up your emergency fund a bit more. You could also set up a sinking fund for expected (and unexpected) medical expenses.
- The best thing you can do is prevention. Take care of your health so you don’t need to visit the doctor much. It’ll help keep costs down, too.
Key takeaways
Alberta’s Bill 11 proposes a dual practice healthcare model. This means doctors can work in the public system and also offer private services. This could affect Canadians in many ways. It could increase out-of-pocket costs, drug coverage, increase reliance on workplace benefits, and contribute to wealth inequality. It could also lead to medical debt. Even if this bill passes, some services will remain publicly funded. You may also want to look into private insurance and build up your emergency fund a bit more. If you’re currently dealing with debt, you can contact one of our trained credit counsellors for advice – they can help you figure out which debt relief strategy could be the right fit for your specific situation.
