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November 15th, 2023

What is the Hospital Insurance and Diagnostic Services Act?

Hospital Insurance, Diagnostic services act

Canada is renowned for its comprehensive healthcare system that prioritizes the well-being of its citizens.

The Hospital Insurance and Diagnostic Services Act (HIDS) was enacted in 1957 by the Parliament of Canada and works to ensure access to essential medical services for all Canadians. There are many features of HIDS that are important to know in order to understand the legislation and its effects on Canadians.1

HIDS Overview

Under the statute, the federal government reimburses the province or territory one-half of its costs for specified hospital and diagnostic services. This promotes the administration of universal coverage for a specific set of treatments and procedures under certain terms and conditions.

Four years after the Act originally passed, all provinces and territories agreed to provide publicly funded inpatient hospital and diagnostic services.1 Hospitals for mental illness and tuberculosis are not included in the Act.

Universal Coverage and Financial Protection

The cornerstone of the HIDS Act is the principle of universal coverage. Under this legislation, all Canadians are entitled to essential medical care and diagnostic procedures, which means all individuals can access necessary medical treatment in an equal and accessible manner.

Another key attribute of HIDS is the Act’s ability to shield Canadians from the high costs frequently associated with medical aid. The Act establishes a system where the government pays for hospital and diagnostic services, relieving individuals of any associated financial burdens.

Hospital Insurance Plans

Canada’s healthcare system operates on a federal-provincial/territorial partnership. Therefore, HIDS allows provinces and territories to administer their own healthcare, as long as they adhere to the principles outlined in the act.

HIDS Required Provisions

  • Must be universally available to all members of the province or territory;
  • Must be accessible and does not preclude or impede access, directly or indirectly, to any citizen;
  • Must be comprehensive of all hospital and diagnostic services available under the insurance plan;
  • Must be portable throughout all provisions/territories.

This approach allows treatments to be tailored to the specific needs and priorities of each region. The Act mandates each province and territory must establish a hospital insurance plan that complies with the principles of universal coverage. These plans cover a wide range of services and work to ensure they are offered in a timely and effective manner.

Diagnostic Support

In addition to hospital coverage, the Act recognizes the importance of diagnostic procedures with the goal that citizens have access to essential diagnostic tests, such as laboratory work, and imaging scans. By incorporating diagnostic support into the legislation, early detection, accurate diagnoses, and effective treatment are more likely.

Continuous Evolution

Lastly, it is important to note HIDS is not a static piece of legislation. It is designed to evolve and adapt to the changing needs of the population and advancements in medical technology. Over the years, amendments have been made to accommodate new treatments, and diagnostic methods. It is likely the Act will continue to evolve as time goes on in order to ensure Canadians are receiving the best healthcare possible.2

By staying true to its fundamental principles and continuously adapting to the evolving medical landscape, this legislation remains a vital component of Canada’s healthcare system, promoting health and well-being across its population.

Sources:

  1. https://www.canada.ca/en/health-canada/services/health-care-system/reports-publications/health-care-system/canada.html, accessed 2023.

  2. https://www.canada.ca/en/health-canada/services/health-care-system/reports-publications/health-care-system/canada.html#a10, accessed 2023.

Sources:

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1829926/

https://www.publichealth.columbia.edu/research/others/comparative-health-policy-library/canada-summary

Categories: insurance, supplement health insurance

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