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10 November 2005November 10, 2005

Using private insurance to finance health care

Economic Note on the financing of private health care

Using private insurance to finance health care

The recent Supreme Court of Canada ruling in the Chaoulli affair determined that the Quebec government cannot forbid private health insurance from covering medically required services. If the possibility of obtaining private insurance is not thwarted by government moves, it will lead to the advent of a parallel private health care system. This will not mark the end of the public system but will allow for greater overall financing and will increase the ability of the health care system to look after patients more quickly and more effectively.

Links of interest

Media release:
Duplicate private health insurance permissible under the Canada Health Act, says the Montreal Economic Institute

The recent Supreme Court of Canada ruling in the Chaoulli affair determined that the Quebec government cannot forbid private health insurance from covering medically required services. If the possibility of obtaining private insurance is not thwarted by government moves, it will lead to the advent of a parallel private health care system. This will not mark the end of the public system but will allow for greater overall financing and will increase the ability of the health care system to look after patients more quickly and more effectively.


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