In: Accounting
List the four health care funding methods used in Canada. State the health care funding method used in your jurisdiction and describe the payroll implication, if any.
If we talk about Canada, the health care funding is done at two levels namely provincial and federal level.
Here below are mentioned four methods of health care funding in Canada :
1) The taxes which are collected from corporate and personal income taxes they are the means of providing funding.
2) Sales tax
3) Lottery proceeds
4) If we talk about few provinces like British Coloumbia, Alberta and Ontario, there a health premium is being charged which is for the purpose of supplementing health funding. But as per the Canada Health Act, these premiums cannot be thought useful for purpose of health coverage.
Talking about the two level, the federal level, is where the funds coming are being allocated or given to the various provinces and the territories through CHST ( Canadian Health and Social Transfer). The transfer payment which are made are combination of the two tax transfers and cash contributions.
At provincial level, this health care funding lie between one third or one half of what these provinces are spending on various social programs.
Mainly the funding come from sources like government or public sources of about three quarter of the total funding and the rest comes from the private sector that include various businesses and private insurance.
If we talk about funding method used in my juridiction, I belong from India. In our law, the health care responsibility is of the state government and not the central federal government. Every state is working for improving public health and raising its standards nutrition as their responsibility.
For the people who are below poverty line, public Healthcare is for free to make them access. Various programs and schemes are being run by the government that provides support to different section of people. There are private insurances that provide funding at that time of crisis.
If we talk about payroll, many employees in public as well as private sectors are provided with funds when they need at the time of any health issue. It is included in their salary. Many companies provide health insurance to their employees at the time of health concern.
These are the pay roll implications.