POLICY WIN: SURREY BOARD OF TRADE APPLAUDS PHARMACARE PLAN BY FEDERAL GOVERNMENT
Pharmacare bill passes in the House of Commons, heads to the Senate
The Federal Government’s pharmacare bill is headed to the Senate after passing third reading in the House of Commons. The legislation would see the federal government offer first-payer coverage of some contraceptive and diabetes medications, and a direction for a future full-fledged universal pharmacare program.
“It continues to be perplexing on why we pay 30-40% more for our prescription medications than the average of 14 comparable countries that offer universal drug coverage, including Germany, the UK, France, Australia, Sweden and New Zealand,” said Anita Huberman, President & CEO, Surrey Board of Trade. “It’s equally puzzling that we remain the only developed nation with universal health care that lacks universal Pharmacare. But now we have hope for the future.”
Canada is the only country with universal public health care that hasn’t implemented national drug coverage. With bold leadership from the federal government, as we have seen on child care, we can make pharmacare happen in 2024.
1. WHY THIS MATTERS?
The pandemic has shown that many are left out in the cold when it comes to pharmaceuticals and benefits. No comparable country separates the management of pharmaceuticals from management of the rest of the health system.
2. A FILL IN THE GAPS APPROACH WILL NOT HELP OUR WORKFORCE
A “fill in the gaps” approach will NOT use purchasing power to lower drug costs. A single-payer universal Pharmacare program WILL use purchasing power to lower drug costs. With a single payer system of universal Pharmacare, employers could use the savings to enhance their coverage of other services such as mental health, vision care, dental care, hearing care and physiotherapy.
3. THIS MATTERS TO BUSINESS
The rising cost of benefit plans to business is unacceptable – and the reason is the rising cost of drugs. We need to remove pharmaceuticals from insurance coverage. 1 in 10 adults have costly, chronic needs for prescriptions. Self-employed businesses and employees who have to pay for their own benefit plan costs are severely at risk as well.
4. IT WILL COST LESS
One of the key points about a national Pharmacare program is that it will, indeed, cost less than the current patchwork of public and private plans. This is not just because of reduced administrative costs; indeed, it is the increased purchasing power of a single-payer system that will drive the vast majority of the $5 billion in annual savings that will save Canadians.
5. WHAT THIS MEANS IN THE END
National Pharmacare will mean that employees and businesses no longer have to pay for expensive prescription drug coverage. The average business owner who provides drug benefits would save over $750 annually per employee. The average worker with workplace drug benefits would save over $100 per year in plan premiums. In addition, employees who pay hundreds or thousands of dollars per year in copayments, coinsurance or deductibles for themselves and their families would never pay more than $100 per household per year. No more coinsurance. No more annual or lifetime limits.
“The Surrey Board of Trade applauds the Government of Canada for taking this bold step towards improving health equity, affordability, and outcomes for all Canadians. This is a crucial advancement in our healthcare system.”
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