This week's budget pledged two-year funding for the federal food mail program, which pays some of the costs of shipping nutritious, perishable food to northern communities accessible only by air. (Larry Crowe/Associated Press)

Health-care experts welcomed the federal budget's commitment to transfer payments in the short term but warned Friday that the increasing demands of the aging population remain.

Finance Minister Jim Flaherty said Thursday that the government would not try to balance the budget by cutting transfer payments for health care or education.

This statement was "reassuring" to Pamela Fralick, president and CEO of the Canadian Healthcare Association.

"To provide any kinds of services to Canadians we needed to know that there's some predictability to the funding coming across to the provinces and territories, so that's a major positive," Fralick said in an interview.

The 2004 Health Care Accord was a 10-year agreement that includes an annual funding increase of six per cent. The federal government has not announced a plan for what will replace the accord after it expires in 2014.

"Our expectations are raised that this commitment to the conditions and spirit of the 2004 Accord will be maintained throughout the coming years," the Canadian Healthcare Association, which represents provincial and territorial health associations, said in a news release.

Poverty among seniors

But the budget fell short in addressing the needs of Canada's aging population, the association said, citing expectations raised by the throne speech this week. The association hoped for measures to reduce poverty among seniors and to allow people who care for their ailing parents not to be penalized when they draw on the Canada Pension Plan.

An estimated 2.1 million informal caregivers provide $25 billion a year in savings to the health system, the association said.

The promise that transfers to the provinces will remain untouched was also a relief to the Canadian Medical Association. Canadian doctors were pleased Ottawa isn't balancing the budget on the backs of patients, as happened in the 1990s, said Dr. Anne Doig, president of the Canadian Medical Association.

Ontario Finance Minister Dwight Duncan called the extension of the Canada health and social transfers good for hospitals, saying it showed Ottawa may be willing to discuss further extensions.

Both the health-care and medical associations applauded the promised release of $500 million for Canada Health Infoway, which aims to introduce electronic medical records in doctors' offices. This is expected to improve patient care by reducing needless repetition of expensive tests when a patient moves between hospitals or provinces.

Health-prevention moves

Federal budget allotments also addressed health promotion and disease prevention, including:

• $6 million for Participaction, the broad-based campaign that encourages physical fitness
• $45 million for the Northern food mail program.
• $285 million over two years for aboriginal health initiatives.
• Extension of the First Nations water and wastewater program.

The $285 million for aboriginal health includes money for an aboriginal diabetes initiative, a community-led diabetes program for First Nations people, who often lack access to specialists and hospitals and seek culturally relevant prevention and treatment for the condition.

Ottawa committed $190 million to the program for a five-year term expiring this month. The National Aboriginal Diabetes Association hoped the new budget's support for the program would reflect increased rates of diabetes among First Nations people.

"Although we would have liked to see a longer-term commitment, it brings great comfort and joy to know that crucial work in diabetes prevention and management can continue in our communities for our people," said Dina Bruyere, the group's executive director in Winnipeg.

The $285 million will also support such aboriginal health programs as a youth suicide prevention strategy, maternal and child health programs, a health human resources initiative and an aboriginal health transition fund.

With files from The Canadian Press