Is the Canadian Healthcare System Public or Private? What Newcomers Need to Know

What many people don’t know is that Canada also has some private healthcare providers. And that the calls for more private healthcare in Canada seem to be increasing – with Alberta recently approving physicians to work in both the private and public systems. While the dual-model may sound like a strange solution, it is a model that’s used in Sweden, Germany, Switzerland, and Australia. 

So, why would people want private healthcare that they have to pay for out-of-pocket? We dig into that question in this post.  

Key Takeaways 

• Canada’s publicly-funded healthcare system isn’t one system – it’s 13 systems (one for each province and territory). 
• Canada’s access issues, including long waits in the emergency room and challenges finding a family doctor, are driving debate about increasing private care in Canada.  
• Everyone wants affordable care, good health outcomes, and shorter wait times – but they are divided on how to get there.  

An Overview of Canada’s Healthcare System 

The first important thing to note about Canada’s publicly-funded healthcare system is that it’s managed at the provincial and territorial level. This means that the provinces and territories deliver healthcare services, and they determine which services are medically necessary. The ‘medically necessary’ designation is important, because those are the services that the province or territory will pay for (so the patient has no out-of-pocket costs). This does vary from province-to-province.  

Anything that isn’t deemed ‘medically necessary’ is a private service. Some common examples include dental services, community-based rehabilitation and therapies (like physiotherapy and some mental health services), ambulance services, and vision care.  

The Issues with Canada’s Publicly-Funded Healthcare System 

Canada’s healthcare system isn’t perfect. There are regular headlines showing that people can’t easily access care – from long emergency department wait times through to issues securing a family doctor.  

The Canadian Medical Association outlines the issues driving the public-vs-private healthcare debate as being:  

• Surging demand for healthcare services as Canada’s population increases.  
• Increasing patients with complex needs due to Canada’s aging population. 
• Healthcare spending is not keeping pace with inflation, resulting in a shortage of healthcare providers.  
• Increasing administrative burdens for physicians and healthcare workers.  
• Over-reliance on hospital care due to a lack of primary care and community-based services.  
• Poor access to care for patients in some provinces and territories.  

How Private Healthcare Can Help 

Those who want increased private healthcare in Canada argue that a private system that works alongside the public system would help to reduce wait times for publicly-funded care. The Fraser Institute, for example, notes that Australia’s dual system means lower spending on healthcare, more doctors, and shorter waitlists compared to Canada’s system.  

But there are people who argue that it’s not fair to have a private system that rewards people who can pay extra for healthcare with better and faster access. Meanwhile, others say that it can actually make wait times worse.

My Experience and Opinions about Dual-Healthcare Systems 

As an Australian, I’m a fan of the dual healthcare system. It always worked well for me, and I do miss some elements of healthcare access that were common in Australia but that aren’t available in Canada. 24-hour non-emergency clinics spring to mind especially, since those really reduced wait times at emergency rooms for emergent medicine.  

That being said, my experience is that there’s a bit more fear around private healthcare in Canada due to the proximity to the US. The US is known for extremely expensive healthcare and insurance, as well as for relatively poor outcomes. So, it’s not hard to see why people may assume that private care = higher costs and worse outcomes in Canada. 

Increasing Privatization in Canada 

Canada is also seeing an increase in the privatization of medical services in recent years too. There are providers that offer virtual access to doctors on short notice for a monthly fee, which is proving popular with busy parents and those who don’t like to wait in urgent care. Interestingly, virtual veterinary services are also becoming more common, indicating that it’s not just human healthcare in need of more options and flexible models.  

Ontario, for example, released a five-point plan to increase private healthcare delivery in 2022. It then announced that thousands of surgeries and diagnostic tests could be outsourced to private providers from January 2023.  

What’s Clear from the Public-Private Healthcare Debate in Canada 

What’s clear is that Canadian residents and Canadian health professionals would love to see some changes to Canada’s current healthcare system. Everyone wants affordable access to care, good health outcomes, and shorter wait times.  

But the extent of what services are available through dual medical systems will likely be a contentious topic in years to come.  

Health Insurance with Cigna Healthcare 

Finding the right private health coverage, and getting value for money, isn’t always straightforward.

That’s why we’re excited to share a special offer from Moving2Canada’s trusted partner, Cigna Healthcare.

If you insure with Cigna Healthcare before 31st December 2025, you’ll benefit from a 10% discount* for the lifetime of your policy!

Cigna Healthcare’s plans offer flexibility to tailor cover to suit your unique circumstances. Some of the main benefits include:

• Worldwide¹ coverage (more than 200 countries and territories) with access to over 2 million hospitals, clinics & practitioners.
• Four optional modules to choose from, so you can tailor cover to suit your needs.
• Access to a multilingual service with 24/7 availability.
• Flexible payment plans to suit your needs: choose from monthly, quarterly, or annual payments. Renewal premiums are unaffected by previous claims.
• A range of digital tools & support, including the Cigna Wellbeing® app and Global Telehealth.
• Full cancer care.
• Unlimited benefit on current or future pandemic related care.

If you’re moving to Canada for 4 months or more, get a quote from Cigna Healthcare and start your new chapter with peace of mind knowing you’re protected from day one.

*10% discount full terms and conditions are available here.

¹ Coverage does not extend to the following locations due to regulatory or operational restrictions: Iran, Syria, Cuba, North Korea, Crimea (Ukraine), Russia, Iraq, Lebanon, Afghanistan, Saudi Arabia, US Virgin Islands, Abu Dhabi (UAE), Guernsey.