HALIFAX - Nova Scotia Premier Darrell Dexter is rejecting the federal government's position that its new health care funding plan isn't negotiable.

Dexter says it's disappointing that Finance Minister Jim Flaherty issued what amounted to an ultimatum on health funding on Monday at a meeting of finance ministers in Victoria.

Jim Flaherty announced that current six-per-cent annual increases will stay in place through 2017, but by 2018 the increases will drop and be tied to the rate of nominal GDP.

Dexter says the federal Conservative government knows the premiers are scheduled to meet in the new year to develop a position on health funding.

The NDP premier says the decision will hurt smaller provinces that don't have the ability to deliver the same level of service as bigger and richer provinces.

Dexter also says there will be another federal election to fight before any changes would take place.