Canada's current patchwork of thousands of private and public prescription plans is not sustainable

June 12, 2019 Ottawa, ON Government of Canada

The Advisory Council on the Implementation of National Pharmacare (the Council) is recommending that Canada implement universal, single-payer, public pharmacare.

The Council recommends the federal government work in partnership with provincial and territorial governments to establish a universal, single-payer public system of prescription drug coverage in Canada to ensure everyone has access to the drugs they need to maintain their physical and mental health. The Council also recommends the establishment of a Canadian drug agency, which would be responsible for developing a national list of prescription drugs (the formulary) beginning with an initial formulary of common or so-called essential medicines by January 1, 2022. The Council recommends that this initial formulary expand to a fully comprehensive formulary, to be in place no later than January 1, 2027.

Universal, single-payer public pharmacare will provide access to prescribed medicines for all Canadians, including the estimated one in five who are either uninsured or underinsured. A national formulary will ensure the same medicines are offered right across Canada. The Council is recommending that pharmacare be portable for Canadians wherever they travel or live within Canada; that there be a separate pathway, with dedicated funding, for expensive drugs for rare diseases; and that the approval process for drugs be further streamlined so Canadians can get faster access to new, innovative drugs.

Universal, single-payer public pharmacare will result in better value for money and substantial savings for governments, businesses, and individual Canadians. Once implemented, pharmacare’s stronger negotiating power, lower administrative costs, as well as other improvements will save taxpayers an estimated $5 billion annually. Savings for individual Canadians and their families will be significant and tangible. Canadian families will save, on average, $350 per year. Pharmacare will also provide businesses with much-needed relief from the high and growing cost of prescription drug insurance. The average business owner who provides drug coverage will save over $750 annually per employee. The Council recommends that Canadians and employers continue to be able to purchase private drug insurance as a form of supplementary insurance to national pharmacare.

The Council heard from thousands of Canadians and found a strongly shared belief that everyone in Canada should have access to prescription drugs based on their need and not their ability to pay, in a manner that is fair and sustainable.

The delivery of the report marks the completion of the Council's mandate. It is the product of discussions with Canadians, provincial and territorial governments, Indigenous governments and representative organizations, patients, labour, business, industry and other experts in relevant fields.