- The Canada Health Transfer, or CHT, is the largest major federal transfer to provinces and territories. It provides long-term predictable funding for health care and supports the principles of the Canada Health Act (CHA).
- CHT payments are made on an equal per capita basis to provide comparable treatment for all Canadians, regardless of where they live.
- Since 2017-18, total CHT funding has been legislated to grow in line with a three-year moving average of nominal gross domestic product (GDP), with total funding guaranteed to increase by at least 3 per cent per year.
- As announced on February 7, 2023, under the Working together to improve health care in Canada Plan, the CHT is currently guaranteed to grow by at least five per cent per year from 2023-24 to 2027-28, to be paid through top-up payments in any year where the CHT’s GDP-linked escalator dips below five per cent.
- In 2028-29, the final top-up payment will be rolled into the CHT base to ensure a permanent funding increase.
- CHT funds have at times been withheld for violations of the CHA in relation to extra billing and user charges. Health Canada produces an Annual Report on the extent to which provincial and territorial health care insurance plans have satisfied the criteria and the conditions for payment under the Act.
- In Budget 2018, the government announced legislative amendments to allow CHT deductions to be reimbursed when provinces and territories have taken the steps necessary to eliminate extra-billing and user charges in the delivery of public health care. This was done to encourage provinces and territories to take corrective action to align their public health care systems with the principles of the CHA, as well as to recognize those that have addressed issues of non-compliance.
- Major Federal Transfers -
