NEW BRUNSWICK REACHES HEALTH-CARE FUNDING DEAL WITH OTTAWA

Dec 22, 2016

By Bob Komsic

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Only days after Ottawa, the provinces and territories failed to reach a deal on health-care funding, New Brunswick’s gone out and secured its own agreement.
It’s for $230-million in additional federal funding over the next decade and includes money for home care and mental health.
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It works out to an estimated annual increase of 4.1%, which Premier Brian Gallant calls ”the middle ground” between the 3.5% Ottawa had been offering and the provinces and territories counter-offer of 5.2%.
The accord also includes a clause that if any other province or territory reaches a better deal, New Brunswick could adopt those terms if it chooses.
Under the deal, the annual Canada Health Transfer payments to the province will rise by 3% or the rate of national GDP growth – whichever is higher.
Funding will be made available as of April 1.
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