Immigration to Canada: How Do US and Canadian Healthcare Differ?

If you’re looking for details on immigration to Canada from USA, Canadian healthcare is an integral part of it. How does it differ from healthcare in the US? Patients never receive free healthcare in the US; instead, they must pay premiums or copays for their medical treatments.

But that’s no different in Canada. There are numerous advantages to the Canadian healthcare system, but “free healthcare” doesn’t exist. Canadians pay for it through taxes; it’s not actually free.

The Canadian Institute for Health Information has provided healthcare data to compare the Canadian and American healthcare systems. The cost of healthcare for Canadians as of 2019 is $7,000 per person. Healthcare in the US costs more than $10,000 per person, according to CNBC.

But what does this mean for you as a patient? Before moving to Canada from the United States, you should know what Canadian healthcare is.

Health Insurance Coverage Availability and Funding

In the US and Canada, health insurance is the main form of payment for medical services. The main difference is how health insurance is financed.

American Healthcare System

Under the American healthcare system, every individual must buy health insurance. The only exception to this rule is insurance plans that the government provides to citizens who fall within certain income, age, or disability categories. This includes programs like Medicare, Medicaid, and the Veterans Health Administration.

In the States, health insurance is typically correlated with employment. But this is only sometimes the case with companies incorporating insurance in their staff’s benefits package. There’s no certainty of coverage, and each company will provide a different level of protection.

Canadian Healthcare System

Americans are interested in immigration to Canada for several reasons, one being the superior healthcare offered. The federal government of Canada provides financial assistance to the provinces for health insurance. But only if the province abides by the guidelines stated in the 1984 Canada Health Act (CHA).

Canada uses this money to provide health insurance to all Canadian citizens via the nation’s public health system.

Healthcare Market Competition and the Role of the Private Sector

Although in various ways, the private sector is part of both the US and Canadian healthcare systems.

American Healthcare System

Private companies are the States’ leading providers of insurance and healthcare services. To attract customers, insurance companies can directly sell health insurance plans to people or sell insurance policies to businesses as a component of employee benefits. Healthcare providers routinely compete for patients based on pricing, quality of service, or medical specialization.

Customers do have some power here, although to a limited extent. The services that insurance companies provide may limit a person’s options. Other restrictions include insurance benefits employers negotiate or the doctors available within an insurance provider’s network.

Canadian Healthcare System

Most healthcare services in Canada are provided by private organizations rather than by the federal government or individual provinces. Therefore, doctors and other medical specialists own and operate independent medical practices or work for for-profit hospitals or healthcare management organizations. Instead of getting paid through claims they submit to private insurers, they receive a sizable income through billing the government health insurance.

Primary Care

In the US and Canada, general practitioners, sometimes known as primary care physicians, are essential. It’s interesting to note that both the US and Canada lack sufficient numbers of these critical medical specialists. Many people who work in primary care are self-employed or run small private practices. However, there are differences in the way they are cared for.

American Healthcare System

Primary care physicians make up about one-third of all US physicians. They lack a clearly defined gatekeeping role for sending patients to specialists or other healthcare service providers. People are free to select their doctor.

Nevertheless, they often base their decision on whether or not that physician is “in-network” with their health insurance company.

Typically, doctors are paid by negotiated rates with private insurers, predetermined fees with public insurance, or capitation through private insurers (or a combination of these). Patients usually pay a percentage of the doctor’s bill unless they’re uninsured and qualify for waived or reduced costs.

Canadian Healthcare System

In Canada, general practitioners make up around 50% of practicing doctors. They refer patients to experts when needed, acting primarily as the first line of defense for healthcare services. Specialists are actually paid less for visits that aren’t referred.

While some provinces or territories may restrict registration, patients can typically choose primary care doctors. Physician compensation may occasionally be performance-related, depending on the province, according to price schedules agreed upon by provincial and territorial ministries of health. Patients aren’t directly accountable for paying doctors as long as the universal healthcare program covers medical services.

Services Included in the Health Insurance

Regardless of how health insurance is paid for, US and Canadian customers are concerned about the medical treatments covered under their national healthcare systems. Due to the plans’ funding variances, they eventually have differential access to various healthcare services.

American Healthcare System

In the US, many health insurance plans are available depending on the benefit packages that companies negotiate. Additionally, it relies on the insurance plans that consumers select or can afford.

Canadian Healthcare System

It’s also typical for Americans to relocate to Canada for other factors. All citizens of Canada are covered under the country’s universal healthcare system for services provided by hospitals, physicians, and surgical and dental procedures carried out in hospitals. Provinces may provide insurance for additional assistance, although they are not compelled to.

These can cover prescription drug coverage, home care, long-term care, vision, dentistry, mental health, and essential healthcare services. Since dentists normally don’t operate in hospitals, dental care is typically paid for in another way, either out of pocket or through private insurance.

Conclusion

Consumer protection in healthcare is crucial in both countries, despite differences in how American and Canadian healthcare systems are structured. Each system also works to keep the level of competition in the healthcare industry high. It’s necessary to promote innovation and ensure that patients receive high-quality care.

However, the fact that Canadian citizens have access to publicly tax-paid health insurance is a plus. Do you have any questions about moving to Canada from the States? Speak with a competent counselor and discover the immigration path to Canada that meets your needs.

Arrange a free consultation today and let Great North Visa help you get a visa.