Alberta has a Expanded Private Healthcare Options:
How do People Finance Private Health Costs?
Alberta has introduced a significant change to how certain medical procedures can be delivered and paid for. Although publicly funded healthcare remains available, some Albertans may now pay privately rather than wait for treatment.
This article discusses the new legislation and how people finance private health expenses.
What Has Changed in Alberta?
Alberta’s Bill 11 created a “dual-practice” healthcare system. Eligible physicians may provide publicly funded surgeries while also offering certain privately paid surgeries in approved facilities. Albertans can remain on the public waiting list or pay privately.
The Alberta government groups its reasons for the change into three broad areas:
- Improve access by giving patients another treatment option and potentially reducing public waiting lists.
- Increase capacity by using private facilities and underused operating-room space.
- Retain patients and doctors by keeping private treatment within Alberta.
Family doctors generally cannot participate in dual practice. Emergency procedures and treatments for life-threatening conditions will remain entirely publicly funded.
Source: Government of Alberta
Do Other Provinces Have Private Healthcare?
Private healthcare already exists across Canada, but provincial rules differ. Ontario and British Columbia generally prohibit extra-billing for publicly insured medical services. Quebec also prohibits participating physicians from charging patients for insured services but permits private insurance for specified procedures. Saskatchewan allows patients to pay privately for MRI and CT scans. For every privately purchased scan, the provider must also perform a scan for someone on the public waiting list at no charge.
Alberta’s model goes further by allowing eligible physicians to provide both publicly funded and privately paid surgeries.
Sources: Government of Ontario
Government of British Columbia
Government of Quebec
Government of Saskatchewan
Concerns for this New Legislation
The focus of this article is not to debate the new legislation. However, a general overview of its critics’ concerns includes private clinics could attract doctors, and other healthcare workers away from the public system.
Private Healthcare Costs
Canadian medicare does not cover every healthcare expense. Out-of-pocket costs may include medical equipment, travel, private diagnostic tests or surgeries. Private health insurance may cover some of these expenses, but coverage limits, deductibles and exclusions can leave patients responsible for the remaining costs.
Even ordinary healthcare expenses can become significant. Statistics Canada estimated that Canadian households paid approximately $7.43 billion out of pocket for oral healthcare in 2021, averaging $460.50 per household.
Source: Statistics Canada
How Can One Finance Healthcare Costs?
Some patients finance these costs by refinancing their mortgage. The funds can then be used for healthcare expenses, subject to available equity, lender approval and refinancing costs. If there is no existing mortgage, the homeowner can complete an equity take-out mortgage.
There is evidence that some Canadian homeowners already use home equity for healthcare expenses. HomeEquity Bank reports that approximately 40% of its reverse-mortgage clients use at least some of the proceeds for healthcare-related expenses. Examples include paying personal-support workers or repaying debts accumulated because of healthcare costs.
The Financial Consumer Agency of Canada also identifies healthcare expenses as one possible use of reverse-mortgage funds.
Sources: HomeEquity Bank
Financial Consumer Agency of Canada
Important Mortgage Refinancing Considerations
Healthcare may be urgent, but do not borrow more than your monthly cash flow can comfortably support. Taking on too much debt could put your finances—and potentially your home—at risk.
Using too much credit or missing payments may also damage your credit score and make future borrowing more difficult. Before refinancing, speak with a licensed mortgage professional to understand the costs, risks and available options.
To learn more about mortgage refinancing, check out my article here
