Rising health-care out-of-pocket costs add to Canada’s affordability squeeze
Out-of-pocket health-care expenses have risen 18.5% since 2022, almost as fast as food prices, deepening the affordability crisis in Canada.
Recent CPI figures show that Canadians are paying significantly more for health-care services out of their own pockets, with an 18.5% rise since 2022, a rate comparable to the surge in food prices. While shelter costs have risen over 16% and food nearly 19%, the health-and-personal-care category has increased just over 15% overall. Analysts attribute the steep climb to a growing private-sector share of services such as dental and vision care, where public constraints are minimal.
Long-term data indicate health-care inflation has outpaced general inflation for most of the past two decades, driven by labor shortages and higher wages. The 2024 Canadian Dental Care Plan has boosted demand but remains administered by private insurers, leaving many patients to cover additional fees. As provinces adopt fiscal restraint and the population ages, private health spending is projected to keep rising, potentially widening access gaps for lower-income households.
