MB: "Free" Health Care Courtesy of Taxpayers

Guess how Manitoba’s NDP government plans on spending your money? If you guessed “to give international students free health care” you would be correct.

Right now international students that come and study in Manitoba pay a $400 insurance premium for health care coverage. They pay the premium because unlike the rest of us, most international students don’t work and don’t pay income taxes in Manitoba to pay for the Manitoba health care system. Thus, the premium helps cover off their share of the costs.

The $400 user fee didn’t sit well with a local student union group, so they urged the government to cancel it. The same student group also thinks Manitoba taxpayers should also start paying for a large portion of each international student’s annual tuition. Apparently the students’ union thinks money grows on trees.

Incredibly, even though Manitoba’s provincial government debt is going up by about $50 per second (roughly $4.3 million per day), the NDP bowed to the student group. They plan on cancelling the $400 fee as of April 1, 2012 and will lose the revenues as a result.

In other words, Manitobans, who already pay some of the highest income taxes in Canada, are now going to have to pay about $1 million more to foot the bill for health coverage for international students.

It’s not like the health care system needs any more cost pressures either. From 1999 to 2011, health expenditures have risen from $2.5 billion in 2001 to about $5.4 billion in 2011.

And let’s be clear, it’s great that international students are coming to study here, share their ideas in the classroom, spend money in our economy and in some cases – choose to settle down in our province after graduation.

But should pay the bill?

The government has argued that it is eliminating the fee to help improve the competitiveness of post secondary institutions in Manitoba so they can attract more international students. However, the facts suggest otherwise.

According to University of Manitoba data, despite the $400 premium, international student enrolment has tripled over the past decade – from 754 students in 1999 to 2,741 students in 2011. So much for the suggestion the fee is a barrier to attracting students.

And that makes sense. If you were considering going to two schools abroad and the cost for attending one school was $30,000 and the other was $30,400, wouldn’t you consider the two options to be about the same in price?

Most rational people would also choose to attend a university based on the reputation of the university, the safety of the campus, possible jobs opportunities after graduation, climate, other amenities in the city, etc. Sure price would be a factor, but when you’re spending $30,000, a $400 fee isn’t likely the tipping point.

Regardless, it’s clear that Health Minister Theresa Oswald (945-3731) needs to hear from Manitobans on this issue. Perhaps if enough of us speak out, the government will cancel its plans and keep the $400 user fee in place.

Perhaps they’ll also get the message to take the matter of our province’s rising debt more seriously and to stop bowing to every request that comes across their desk.

By: Colin Craig
Posted: October 31, 2011
Topic: Manitoba

Type: Commentary

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Comments

Flawed rationale for policy change

If the data shows that the user fee is not preventing international students from coming here, then why are they coming here in droves?

I would like to note several flaws in your reasoning:

First you state that all international students have to pay the $400 insurance fee. This is not true, as international students qualify for an off-campus work permit after 6 months of studying in Manitoba. As soon as they are a valid Manitoba worker they are covered under Maniotba Health. Thus the new policy will only affect the new students arriving in Manitoba, as all others were already covered for free. This policy will not impact a lot of students as most are valid Manitoba workers and taxpayers already. We pay income tax, CPP and EI, without EVER being able to reap the benefits of these plans.

Before coming to Canada, international students have to undergo a health exam,where students will not be accepted to Canada if they suffer from major/costly diseases. Although students may become sick during their study in Manitoba, they generally do not suffer from the expensive age-related diseases that cost our health system so much every year. Thus any increase in health expenditures will most likely be related to our increasing aging population and obesity, instead of the occasional doctor visit by an international student.

International students currently contribute at least $75 million to the Manitoba economy through expenditures to cover tuition fees, their needs, as well as income taxes (www.gov.mb.ca/ie/pdf/ie_strategy2009.pdf).The internationalization of Manitoba is necessary to attract new immigrants as it is the only way for our generation to pay for world that baby-boomers expect to be there when it's time for retirement.

With more Manitobans leaving the province to find better opportunities in SK and AB, it is of the utmost importance that we can attract new citizens. Since the majority of international students with good ties to Manitoba indicate they would like to settle in MB, the $400 waiver for first year international students may be more symbolic than anything else.

Everybody has a right to healthcare insurance, and if the adoption of this policy helps lowering the barrier for international students to start a life here in Manitoba, all Manitobans, young, old and new, will benefit.

Jurjen van der Sluijs
International Student Commissioner
Brandon University Students' Union

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