New plan called 'vague and confusing' by CLHIA – but other groups welcome pharmacare plan
The federal government has completed the first phase of its plan to implement a national universal pharmacare program in the country.
The federal government gave royal assent to the Pharmacare Act on Thursday, and the law took effect immediately. The law provides universal access to contraception and diabetes medications.
“Everyone in Canada deserves access to the care they need, including to prescription medications,” says Mark Holland, minister of health. “Our plan for universal access to contraception means reproductive freedom and choice and access to diabetes medication is a transformational step towards improving health outcomes and health equity in Canada. I thank all partners for their contributions to making this happen.”
The minister will continue working with provinces and territories to reach bilateral agreements to provide universal, single-payer, first-dollar access to a range of contraception and diabetes medications as the first phase of a national universal pharmacare program. These agreements will support reproductive freedom by providing up to nine million women and gender diverse people in Canada free access to contraception.
Additionally, the 3.7 million people in Canada living with diabetes will have universal access to a suite of medications that reduce the risk of serious health complications and improve quality of life. The act will also establish a fund for diabetes devices and supplies to help Canadians manage and monitor their diabetes and administer their medication.
Pharmacare Act and essential drugs
The Pharmacare Act also requires that Canada’s Drug Agency develop a list of essential drugs and related products to inform the development of a national formulary, a national bulk purchasing strategy to help further reduce drug prices, and a pan-Canadian strategy on the appropriate use of prescription medications. On Dec. 18, 2023, Ottawa announced the creation of the agency with an investment of over $89.5 million over 5 years, starting in 2024-25.
The government will consult with provinces, territories, Indigenous Peoples, and other partners and stakeholders about the path forward to improve the accessibility, affordability, and appropriate use of pharmaceutical products.
The Pharmacare Act also requires that a committee of experts be established within thirty days to make recommendations on the operation and financing of national, universal, single-payer pharmacare in Canada.
“Today is about pharmacare. It is an incredibly important day for this country,” says Holland, according to a Global News report. “I am not going to say this was easy…. Getting this bill adopted through the House and the Senate was incredibly difficult.”
The government introduced Bill C-64, An Act respecting pharmacare (Pharmacare Act), in February.
Pharmacare legislation passed too soon?
However, the Canadian Life and Health Insurance Association (CLHIA) feels the legislation was passed too soon.
“Canada's life and health insurers believe all Canadians should be able to access the drugs they have been prescribed. Bill C-64 held the promise of increasing access for Canadians. Unfortunately, the government's decision to rush through a vague and confusing law will jeopardize Canadians' existing access to the medicines they need, do little to fill gaps, and needlessly waste billions while continuing to disregard provincial jurisdiction over healthcare,” says Stephen Frank, President and CEO of the group.
The government disregarded concerns raised by stakeholders on all sides about the risks of this legislation, says the CLHIA.
“The Minister's recent letter to Senators clarified that this bill establishes a Canadian pharmacare plan for diabetes and contraceptive medications paid for and administered exclusively through a public plan, rather than through a mix of public and private payers. This eliminates Canadians' existing private coverage for these medications and creates significant uncertainty for their remaining drug benefits."
In 2021, the introduction of a universal national pharmacare program for Canada took a further step after Ottawa and Prince Edward Island signed an agreement.
Stakeholders react to Pharmacare Act
This is a monumental win for workers and their families, says Bea Bruske, president of the Canadian Labour Congress.
“For too long, people across this country have had to choose between putting food on the table and paying for the medications they need. Bill C-64 brings us one step closer to ending that predicament, but we still have work to do.”
Bruske also calls on every province and territory to “get on board, so that no Canadian is left behind”.
The Registered Nurses' Association of Ontario (RNAO)’s CEO Doris Grinspun says they are “thrilled” with the progress towards a universal pharmacare program, but “we must be aware of the roadblocks that could undermine pharmacare”.
“Insurance and pharmaceutical companies will continue to obstruct a robust national program. And, some provincial governments and federal political leaders do not support social programs,” she says. She cites for example Conservative Party leader Pierre Poilievre and his MPs who voted against Bill C-64 in the House of Commons. Also, Alberta and Quebec have already indicated they may opt out of the new program, and “the Ontario government has yet to show its support."
"Securing health care is an ongoing struggle. It is the persistent advocacy of civil society organizations, health professionals, community groups, and patient advocates that has brought us to this historic point. This collective action kept the dream of pharmacare alive for years, and it will carry us through to a truly universal program."
