National welfare is here! Canada's free drug program officially launched, accessible to everyone!
The Canadian Drug Insurance Act has been passed in the Senate and received Royal Assent, officially becoming law. This means that many Canadians will soon have access to more drugs, including diabetes treatment and contraceptives, which are considered necessary and may cost hundreds or thousands of Canadian dollars each year, although specific provincial agreements are still under negotiation.
This legislation was part of a previous political agreement between the Liberal Party and the New Democratic Party. Although the agreement has been dissolved, this law lays the framework for a future universal drug insurance plan.
Health Secretary Mark Holland said at a press conference on Friday, "Today's topic is drug insurance. This is a very important day for the country. I won't say it's easy... It's very difficult to get this bill through the House and Senate
Scope of coverage of the bill
With the passage of Bill C-64, the drug insurance plan will provide coverage for certain diabetes treatment and contraceptives in provinces that have reached agreements with the federal government. Holland pointed out that these agreements will support reproductive freedom and provide free contraceptive drugs to up to 9 million Canadian women and gender diverse populations.
In addition, the Canadian government said that about 3.7 million diabetes patients nationwide will be covered by a series of drugs, which can reduce the risk of serious health complications and improve the quality of life.
The primary goal of the bill is to provide Canadians with a wide range of contraceptives and diabetes drugs, and plans to expand the coverage of drugs in the future.
What medications are included?
Drug insurance legislation includes universal coverage of contraceptives and diabetes drugs, with the aim of gradually expanding the types of drugs covered in the future. The bill also introduces a "first dollar coverage" plan for universal drug insurance, which means the government will bear the cost of drugs.
The coverage of diabetes drugs includes the first treatment drugs to reduce blood sugar, such as:
Insulin, suitable for type 1 and type 2 diabetes patients;
Metformin, suitable for type 2 diabetes patients;
Other drugs commonly used in combination with insulin and metformin, such as sulfonylureas and SGLT-2 inhibitors.
In addition, the bill also covers contraceptive drugs for approximately 9 million Canadians of childbearing age. These medications include oral contraceptives, copper and hormonal intrauterine devices (IUDs), injectable drugs, implants, vaginal rings, and post coital contraceptives.
Will each province sign the agreement?
Now that the bill has become law, Canadian Prime Minister Justin Trudeau is urging provinces and territories to start negotiating drug insurance agreements as soon as possible. These agreements are crucial for the implementation of the plan, and the federal government must negotiate and sign agreements with provinces and territories across the country.
Trudeau told reporters on Friday, "This is a real progress, but now we need provinces and territories to join the negotiations, sign agreements with us, and help Canadians alleviate their family budget pressures, the sooner the better
British Columbia has signed a memorandum of understanding committing to providing coverage for residents, although the coverage in British Columbia may differ slightly from other provinces. The federal coverage includes contraceptives and diabetes drugs and supplies, but Adrian Dix, the British Columbia Health Minister, said that the oral contraceptives have been covered under the provincial plan, so this part of the funds will be used to provide hormone replacement therapy for women.
What is the cost?
The 2024 federal budget report shows that the first phase of national drug insurance will be launched between 2024-2025, with an estimated cost of $1.5 billion over five years.
The Congressional Budget Office (PBO) estimates that the total drug expenditure for the drug insurance program will reach 33.2 billion Canadian dollars in the 2024-2025 fiscal year, increasing to 38.9 billion Canadian dollars by 2027-2028.
PBO also estimates that the cost savings from drug expenditures will be CAD 1.4 billion in 2024-2025, and this number is expected to increase to CAD 2.2 billion by 2027-2028.
Holland stated that this is the first step towards establishing a universal drug insurance system in Canada. Next, Ottawa will convene an expert group next month to investigate the next steps in establishing a comprehensive drug insurance plan. The committee will submit its recommendations to the Minister of Health within one year.
This bill will provide an important basis for the future national drug insurance plan.
Source: https://globalnews.ca/news/10807237/canada-pharmacare-plan-what-to-know/
https://www.canada.ca/en/health-canada/news/2024/10/government-of-canada-passes-legislation-for-a-first-phase-of-national-universal-pharmacare.html