What role does the federal government play in health care?

March 25, 2025

Health care in Canada is a joint effort.

Provinces and territories are responsible for administering health care. But the federal government plays a vital role, allocating funding and setting national standards — making health care a key platform issue during the federal election.

Here’s what you need to know about federal responsibilities in health care.

Setting the standard

Canada’s publicly funded health care system — known as Medicare — is governed by the Canada Health Act Opens in a new window. It states that all Canadians should have access to medically necessary physician and hospital services. While provinces and territories decide exactly which care is covered, the baseline is access to doctor’s visits, most diagnostic exams, essential surgeries and emergency care, with no direct cost to patients.

The federal government backs these services with significant funding through the Canada Health Transfer. But provincial and territorial governments need to meet specific standards to qualify for this funding. The federal government can also issue clarifications of the Act, like it did this January to expand coverage for health professionals providing services previously offered only by physicians.

Additional funding – with strings attached

In 2023, the federal government announced $46.2-billion in new health funding tied to priorities informed by organizations like the CMA.

Provinces and territories must report back on their plans and progress in four key areas: improving family health services, addressing health workforce shortages, supports for those struggling with mental health and substance use, and creating a modernized health system.

Health reform

The federal government can usher in wide-ranging health reform, through legislation and funding agreements with provinces and territories. For example, the Pharmacare Act Opens in a new windowcame into force in October 2024. The federal government has also legalized cannabis and medical assistance in dying, as well as introduced changes to tobacco and alcohol advertising Opens in a new window.

Financial relief from health costs

The government provides tax support for some health-related costs, such as disability and medical expenses, and for caregivers and disabled dependents.

Providing care

While provinces and territories administer and deliver health care to most Canadians, the federal government oversees health care for some Indigenous communities, current and former members of the military, people incarcerated in federal prisons and some refugee claimants.

Keeping Canadians safe

One of the federal government’s key responsibilities is also making sure Canadians stay healthy by regulating products such as pharmaceuticals, chemicals, medical devices, food and more.

The federal government supports disease monitoring and prevention as well. In emergency situations, they work with the federally regulated Public Health Agency of Canada to protect Canadians.

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