Millennials not solution to boomers’ healthcare cost – Canadian Government Executive

NEWS

SEARCH

Best PracticeChange ManagementGovernmentPublic Sector
senior healthcare
August 25, 2016

Millennials not solution to boomers’ healthcare cost

At some point, millennial taxpayers will not be willing to accept this burden.

It’s a common notion that young workers born in the mid-1990s to the early 200s are going to be stuck with the healthcare cost racked up by the aging post-World War II demographic.

But it’s probably useless trying to figure out how the millennials will be paying for the healthcare of baby boomers. That’s because they won’t.  At least, “unless there is a major change in the way that care is delivered,” according to healthcare issues and management experts who recently wrote an article on the topic.

Millennials are “facing a double squeeze,” according to the article written by David Dodge, Brian Golden, and Tiff Macklem. Dodge, is a senior adviser at Bennett Jones and former deputy minister of health; Golden is vice-dean of professional programs at the Rotman School of Management and the Sandra Rotman Chair in health-sector strategy at the University of Toronto; and Macklem is dean of the Rotman School of Management. Their article, Millennials can’t pay for boomer healthcare without productivity gains, was published in the Globe and Mail.

On one side, Canada’s economic growth over the next 20 years or so is projected to be just 1.5 per cent a year (half of what it used to be). The slowdown is largely being caused by the declining labour force due to the retirement of the boomer population.

RELATED CONTENT

‘Silver tsunami’ to propel demand for cloud-based healthcare products

The Interview On Leadership, Healthcare, and Innovation with Maureen O’Neil, President of the Canadian Foundation for Healthcare Improvement

Gamification: Public Health Agency of Canada’s Winning Strategy

On the other, the efficiency of Canada’s healthcare system is fueling an increase in healthcare spending by as much as 3.5 per cent a year.

Health-care spending for the typical senior ($20,000 at age 80) has averaged about five times that for the typical person under 65 ($4,000 a year on average), according to the article. Furthermore, the ratio of seniors to the labour-force-aged population will increase from 25 per cent in 2010 to 50 per cent in 2035.

“This double squeeze has millennials with almost stagnant incomes facing ever-increasing taxes to pay for aging boomers’ care. At some point, millennial taxpayers will not be willing to accept this burden,” the article points out.

Canada needs to improve economic productivity and its healthcare system.

“We need relentless focus from government, labour, and business on raising overall productivity in Canada,” the trio suggests. “Our best shot is a four-pillar growth strategy anchored on innovation, talent, trade and infrastructure. But truth be told, policy levers on overall productivity have proven elusive.”

While Canada’s healthcare systems is a source of national pride, Canada’s provincial systems deliver less and cost more when compared to many developed countries such as Great Britain, Australia, the Netherlands, Germany and New Zealand.

The writers said the government can provide economic incentives to healthcare providers in the public system to boost efficiency and effectiveness of delivery. This would mean allocating more money to caregivers and organizations that provide the most healthcare value to citizens.

The government can also explore bundled reimbursements.

“This involves payments to “consolidators” (hospitals) of a fixed fee for a bundle of services, based on outcomes. A hospital could receive a dollar amount for treating a patient in need of a hip replacement, and that hospital would purchase or provide the operating-room time, labour (surgeons, nurses, physiotherapists, home care) and medical equipment,” the article said. “…The consolidators that find ways to provide quality care for below the set price earn a margin.”

Read the complete article here.

About this author

Nestor Arellano

Nestor is a Toronto-based journalist who specializes in writing about technology and business. He is the editor of Vanguard Magazine and the associate editor of IT in Canada and a regular contributor to CGE.

0 comments

There are no comments for this post yet.

Be the first to comment. Click here.

Best Practice
 
Facebook Pages can be an essential tool for businesses and charities,...
 
In this special episode of CGE Radio, your host John Jones...
 
The North Atlantic Treaty Organization, with its 28 independent member countries...
 
Cost overruns have become institutionalized in the federal government, according to...
 
Last year, procurement Minister Jody Foote was prompted by the swirling...
 
The rapid advances in digital technology, demographic and societal shift even...
 
Results Washington is Washington state government’s data-driven performance management and continuous...
 
Rules and accountability are helpful in developing and standardizing processes but...
 
Ontario’s provincial government needs to act fast in building a coordinated...
 
It’s a common notion that young workers born in the mid-1990s...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
Please to view this Content. (Not a member? Join Today! )...
 
There’s a fine line between confidence and naivety – a line...
 
Please to view this Content. (Not a member? Join Today! )...
 
As populations grow and age, the demand for services increases. As...
 
By Nicole Verkindt Despite growing up in a small town in...
 
As much a 20 per cent of grade seven students in...
 
By Jason Zhang  The best way to cost effectively manage the retention...
 
He is often referred to as the federal government’s first “chief...
 
Are you absolutely clear what the government wants to achieve? Are...
 
Please to view this Content. (Not a member? Join Today! )...
 
Here’s some bad news for organizations contemplating projects that have something...
 
Nearly half of Canadian organizations are falling behind on implementation of...
 
The idea of converged infrastructure and converged systems in the datacentre...
 
Please to view this Content. (Not a member? Join Today! )...
 
There is no shortage of examples of businesses that effectively used...
 
Microsoft, on Tuesday, ended support for older versions of Internet Explorer...
 
Written by Tim Wacker Almost a quarter century ago, when most...
 
Written By Chris Brown To deliver results that senior executives value,...
 
Written By Jason McNaught Contrary to what you may have heard,...
 
Written by  Benjamin Selinger and Gabriel Flores A real challenge for...
 
Written by  Patrice Dutil It’s hard to believe we are still...
 
Written by  Patrice Dutil Craig Dowden, President and Founder of Craig...
 
Written by  Brady G. Wilson You may not realize it, but...
 
Written by  Roxanne Descôteaux When I first became a manager over...
 
The good news is that the Government of Canada recognizes the...
 
You sometimes wonder why government can’t be better at just getting...
 
Hill+Knowlton Canada announced last week that it has received the prestigious...
 
I’ve been giving 110 percent for as long as I can...
 
The National Voluntary Standard for psychological health and safety in the...
 
The government of Alberta has banded together with British Columbia and...
 
When we put out the call to cities across Canada for...
 
BC Hydro was experiencing ongoing challenges with IT assets decommissioned as...
 
City councils are important. They not only represent citizens at the...
 
Business continuity management has evolved into a specialized discipline, but you...
 
Saskatchewan’s Ministry of Health is leading a new approach to strategic...
 
Whether you have read John Kotter’s classic Leading Change or not,...
 
Energy, not time, is the fundamental currency of high performance. But...
 
Across the country, public sector leaders are challenged with the daunting...
 
When Neil Armstrong stepped onto the moon, it was government that...
 
Ego can do us in. It can lead to arrogance, blindness,...
 
and the more layers between a given employee and the relevant...
 
CGE Vol.14 No.2 February 2008 Management speaks of change in positive...
 
Innovation, leadership and a commitment to building a knowledge advantage are...
 
One of the most paradoxical Biblical parables, found the Gospel of...
 
CGE Vol.14 No.1 January 2008 “We’ve entered into an era in...
 
L’une des paraboles bibliques les plus paradoxales rapportées par Luc est...
 
Chris Baker is Deputy Minister, Policy and Priorities, and Deputy Minister,...
 
CGE Vol.14 No.2 February 2008 Often overworked and understaffed, the procurement...
 
Federal, provincial and municipal governments provide billions of dollars in grants...
 
During the American presidential election campaign of 1976, Jimmy Carter, then...
 
The Ontario Public Service celebrated ten years of hosting Showcase Ontario,...
 
Tell the truth. Deep down, do you sometimes – or often...
 
What if our general approach to brainstorming was all wrong? That...
 
Nearly two decades after I read Lincoln On Leadership, the messages...
 
True leaders are proactive. They get things done. They accomplish that...
 
Management and leadership are complicated. So it would be lovely if...
 
Government revolves around power. Political parties seek power. They implement their...
 
Managers generally walk around with a what’s-going-wrong mentality. They are fixated...
 
Government runs on expertise. Government executives seek the best knowledge and...
 
Let’s resume last month’s discussion on effective change initiatives with some...
 
When Ontario Premier Dalton McGuinty set as a prime goal of...
 
By now it’s commonplace knowledge that emotional intelligence is vital to...
 
Good leaders can make bad decisions. President Kennedy blundered over the...
 
The TRIC model of leadership is enshrined in the Ontario Public...
 
A respectful workplace is a critical ingredient of successful public service...
 
For the third year in a row, the Ontario Public Service...
 
Justice on Target (JOT) takes a unique and bold approach to...
 
Perched on top a 60 meter column in a bustling square...
 
For the second year in a row, the Ontario Public Service...
 
OTTAWA – Management consultants at Accenture, a respected longtime observer of...
 
La plupart des leaders reconnaissent d’emblée que leur efficacité dépend de...
 
Most leaders will readily agree that earning and keeping the trust...
 
Some title Some author
Some excerpt
 
Some title Some author
Some excerpt
Facebook Pages can be an essential tool for businesses and charities,...

Member Login

Forgot Password?

Join Us

Password Reset
Please enter your e-mail address. You will receive a new password via e-mail.