B.C.’s incoming Conservatives are weighing how to fund health priorities as the Canada Health Transfer is scheduled to rise by at least three per cent starting in 2028, down from a five per cent annual minimum since 2023.
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B.C.’s incoming Conservative government faces uncertainty over federal health-care funding after 2028, even as the federal Liberals unveil their second budget.
The federal Canada Health Transfer is the largest major transfer to provinces and territories for long-term health-care funding. Transfers have increased by a guaranteed five per cent each year since 2023, but the minimum annual increase is scheduled to dip to three per cent starting in 2028.
The issue is likely to be a challenge for the new Conservative government, which campaigned on promises to improve the health-care system while managing B.C.’s ballooning deficit.
During its fall campaign, the B.C. Conservative party said it pledged to keep rural emergency rooms and maternity wards open, expand long-term care, cut health-care wait times, and recruit more doctors.
A B.C. Conservative Party of B.C. spokesperson said in a statement that “there were positives for British Columbia in the federal budget and there are areas where additional investment will be needed to support British Columbians and strengthen our economy,” adding that the party would review the budget during the transition period and assess how it aligns with its commitments.
Ravi Kahlon, B.C.’s former minister of health, said a three per cent increase “is not sustainable,” noting that most provinces’ health-care costs are climbing by seven per cent or more.
Kahlon also said additional agreements involving seniors and mental health and addiction support still need to be renewed, arguing that “the dollars are just not there in this budget to be able to address those pressures.”
The federal government granted a one-year extension to a deal supporting mental health, addictions and home care services, but health ministers warned in October that without boosting transfers or renewing other funding agreements, provinces would not be able to keep programs afloat.
B.C. health ministers and federal health ministers have described the upcoming transfer schedule as part of a looming “fiscal cliff.” The Conservatives said that once ministers are sworn in, they will have a mandate to “advocate strongly for the federal investments and resources British Columbia needs to succeed.”
The federal budget documents cited in the report indicate the cost to finance Canada’s roughly $1.3-trillion national debt is projected to increase from $60.2 billion in 2026-27 to $85.5 billion in 2030-31, exceeding what the government spends on some crucial programs, including the Canada Health Transfer.
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