If a province funds health care by collecting premiums from individuals, this approach is best described as:

• A. Federal transfers
• B. Direct user charges
• C. Collect premiums from individuals
• D. Funded through private philanthropy

Answer: (C)

The key idea here is identifying how health care is funded: who pays and how. If a province funds health care by collecting money directly from people in the form of premiums, that’s a direct charge to users for access to services. This labeling emphasizes that individuals themselves are paying specific premiums to support health coverage, rather than the funding coming from another level of government or from charitable donations. It isn’t federal transfers, which would be funds flowing from the federal government to provinces, and it isn’t private philanthropy, which would be donations from private sources without a mandated premium for access. So describing the approach as collecting premiums from individuals accurately captures the mechanism of direct user charges by individuals for health coverage.