Algoma-Manitoulin-Kapuskasing MP, Carol Hughes writes a regular column about initiatives and issues impacting our community.
Last week, the Parliamentary Budget Officer, Yves Giroux, released a long-anticipated report on the anticipated costs and effects of a single-payer universal drug plan. His findings confirm, once again, that Canadians can save billions of dollars while extending comprehensive prescription drug coverage to everyone through a single-payer universal pharmacare system.
It was the vision of Tommy Douglas, the father of Canadian Medicare, to have all aspects of health care, from routine doctors’ appointments to dental care and indeed medication, covered in such a manner that no Canadian would go without the medical coverage they needed. Universal pharmacare has been studied endlessly for decades now. Even in recent history, the Liberal government had promised a universal pharmacare program. They funded the Hoskins Advisory Council report which provided a detailed blueprint for how to implement pharmacare. But, over the years, pharmacare seemed to have dropped completely off their radar, and during the 2021 election campaign, the promise for universal pharmacare was no longer featured on their platform. Implementing pharmacare is, however, a feature of the Supply and Confidence Agreement with the NDP.
The government has been exceptionally slow tabling a plan to develop the framework for universal pharmacare, and it has just months to get it passed if it wish to keep its commitments to the Supply and Confidence Agreement.
Last week’s PBO report on pharmacare is another prime example of why this issue is so important. It estimates that, excluding hospital drugs, total prescription drug spending across the country was $36.6 billion in 2021-22, 28 percent higher than in 2015-16. However, a single-payer universal plan would cost $33.2 billion in 2024-25, with the PBO estimating cost savings on drug expenditures of $1.4 billion in that first-year estimation alone, rising to a total savings of $2.2 billion by 2027-28. Canadians would actually save money under universal single-payer. Additionally, it would allow 8 million Canadians who have no or poor medical coverage to receive the prescription drugs they need. In essence, because of the bulk purchasing power afforded by a single-payer, the federal government’s ability to negotiate medication at their lowest cost will be maximized.
Eric Hoskins, the former Ontario Health Minister who led the advisory council on pharmacare, continues to recommend its implementation, even penning a recent op-ed in The Globe and Mail. In his op-ed, he discusses the cost-savings universal, single-payer pharmacare would have, stating “bulk purchasing of medicines would shave $5-billion annually from what Canadians currently pay for prescriptions… families will save, on average, $350 a year on medicines, while businesses will save $750 per employee.” When we listen to the experts, it’s clear that pharmacare is not only good for Canadians but also for the economy.
Additionally, a pharmacare program would have greater knock-on effects to the rest of the economy. If people can get the medication they need, at no additional out-of-pocket cost, they will be healthier and will take less sick time. If people can access medication without needing to cut pills in half, they will be less likely to need a hospital visit, which in turn will result in better outcomes for our emergency rooms.
It’s a bit puzzling why the government continues to drag its feet on this issue. They have previously campaigned on universal pharmacare, despite ignoring it during the last election. They appointed the advisory board that recommended universal, single-payer. It’s understandable, to some degree, that delays may happen. Health Minister Mark Holland has only been in the position since this summer, however, given all that has happened in this file over the years, particularly with the Supply and Confidence Agreement in place, it’s hard to understand why the government hasn’t tabled a bill yet. They know universal, single-payer is the right approach.
There are 8 million Canadians who currently lack adequate drug coverage and can no longer afford to wait. The next few months will give us a lot of insight into where this government’s priorities are.