What Canadian Health Care Costs You Despite Trump's $90 Billion Claim

The U.S. president says America is footing the bill for your health care. Published data tells a different story, and the real numbers on what Canadians pay are worth knowing for your own budget.

At a rally in Highland Heights, Kentucky, on October 17, U.S. President Donald Trump told supporters the United States is losing 90 billion US dollars a year so that Canada can have a health-care system, as reported by money.ca. He also said Canadians spend that money unwisely. Trump offered no evidence for the claim, and no mechanism exists by which American taxpayers fund Canadian hospitals or doctors.

Key takeaways

Trump's 90-billion-dollar figure appears to refer to trade, and the actual U.S. goods and services deficit with Canada was 27.3 billion US dollars in 2025.

Canadians fund their own system through provincial and federal taxes, and Ottawa expects its transfers to the provinces to reach 54.7 billion dollars in 2025-26.

The Canadian Institute for Health Information estimates total health spending reached 399 billion dollars in 2025, with the public sector covering about 71 percent.

Private health spending per person rose 8.1 percent from 2021 to 2023, about twice the pace of public spending, according to the Canadian Centre for Policy Alternatives.

The medical expense tax credit, the Canadian Dental Care Plan, and provincial drug programs can all lower what you pay yourself.

Is the $90 billion really a trade deficit?

The claim appears to be a reference to trade between the two countries, with health care attached to it. According to USAFacts, a non-partisan American non-profit that compiles government data, the U.S. goods and services trade deficit with Canada shrank to 27.3 billion US dollars in 2025, far below 90 billion. Much of what Americans buy from Canada is energy, and the U.S. Energy Information Administration puts last year's American energy imports from Canada at about 111 billion US dollars, mostly crude oil.

A trade deficit means American buyers paid for goods and services they received, with energy the biggest share. It is not a cheque to Ottawa, and none of it funds a hospital bed in Canada.

Where does the Canada Health Transfer fit in?

Canadians pay for their own system through their taxes. The provinces and territories deliver care, with each running its own health insurance plan and deciding which services count as medically necessary. The federal government sets national standards under the Canada Health Act and sends money to the provinces through the Canada Health Transfer, which the Department of Finance expects to reach 54.7 billion dollars in 2025-26. Ottawa also funds targeted programs on top of the transfer, as our report on home care and mental health funding explains, and our guide to who decides what in Canadian health care shows how those layers fit together.

The Fraser Institute, a fiscally conservative think tank, publishes a yearly modelled estimate that assigns a share of each family's total tax bill to public health care. For 2026, it estimates that a typical two-parent, two-child family pays about 21,115 dollars, a single Canadian about 6,464 dollars, and the lowest-earning 10 percent of families about 637 dollars. Other analysts calculate it differently, though the point stands that free at the point of care is not the same as free.

The real trade gap was less than a third of the figure Trump cited, and Canadians covered their own health spending.

Why are out-of-pocket costs climbing?

The more useful question for Canadian households is what they pay outside the public system. The Canadian Institute for Health Information estimates total health spending reached 399 billion dollars in 2025, with the public sector covering about 71 percent. The rest comes from private insurance and out-of-pocket payments, and that private share is growing as provinces experiment with more private delivery, as Alberta's new dual practice rules show.

The Canadian Centre for Policy Alternatives, a progressive research institute, found that private health spending per person rose 8.1 percent from 2021 to 2023, compared with 4.3 percent for public spending, averaging 2,602 dollars per person. Statistics Canada price data cited by money.ca shows out-of-pocket health costs have risen 18.5 percent since 2022, with physiotherapy, eye exams, and basic dental care each up about 20 percent. Even some vaccines come out of pocket, as our guide to paying for a vaccine yourself explains. Gaps like these are why many Canadian health care costs land on families directly.

How can a tax credit and other programs lower your costs?

Cross-border rhetoric is out of your hands, though your own health spending is not. A few programs exist precisely to soften Canadian health care costs, and many people leave money on the table by skipping them.

Claim the medical expense tax credit. For the 2025 tax year, the Canada Revenue Agency lets you claim eligible expenses above 2,834 dollars or 3 percent of your net income, whichever is less, and couples often save more by claiming on the lower-income spouse's return.

Check the Canadian Dental Care Plan. The plan covers people without dental insurance whose adjusted family net income is under 90,000 dollars, on a sliding scale, and our report card on the dental plan explains why some patients still get surprise bills.

Look up your provincial drug programs. Every province runs drug coverage for some low-income families and seniors. The first phase of national pharmacare also covers diabetes medications and contraceptives where agreements are in place, including Prince Edward Island, Manitoba, British Columbia, and Yukon.

Use workplace benefits before they reset. Many plans reset on January 1, so book dental, vision, and physiotherapy appointments before unused coverage disappears.

Keep every receipt. Prescriptions, dental work, glasses, and travel for treatment can all count toward the tax credit.

Frequently asked questions

Does the United States pay for Canadian health care?

No U.S. government money funds Canada's health system. Canadians pay for it through provincial and federal taxes, with the federal share sent to provinces through the Canada Health Transfer. The 90-billion-dollar figure cited by Donald Trump appears to refer to the trade deficit, which was actually 27.3 billion US dollars in 2025.

How much does a Canadian family pay for public health care?

The Fraser Institute estimates that a typical two-parent, two-child family will pay about 21,115 dollars in taxes toward public health care in 2026. A single Canadian pays about 6,464 dollars by the same model. It is an estimate based on each family's share of total taxes, and other analysts calculate it differently.

What health costs does the public system not cover?

Provincial plans generally do not cover outpatient prescription drugs for most working-age adults, dental care, eye exams for adults, physiotherapy, or counselling. Those costs fall to private insurance or to patients directly. Programs such as the Canadian Dental Care Plan, provincial drug plans, and the medical expense tax credit can bring Canadian health care costs down for many households.

Your next step

Whatever gets said on a campaign stage, your health care happens here at home. The Medimap Health Hub has more on how coverage works in Canada, and you can find a family practice near you or book a walk-in clinic visit that your provincial plan covers.

Disclaimer: This article is for general information only and is not medical advice. It does not replace a conversation with a doctor or other qualified health professional who knows your history. If you think you are having a medical emergency, call 911 or go to the nearest emergency department.