come on the market every
month; many people perceive
the latest to be the greatest.
While there are some new
drugs that offer significant
improvements to Canadians,
there are also a lot of new
drugs that work the same and
are more expensive. The $4
billion in savings laid out in
the Office of the Parliamentary Budget Officer’s 2017 report
acknowledges there is significant financial risk if drug consumption
is underestimated.
The funding model is also a problem. Would the federal government
front the tab, given it is their initiative? Or are the
provinces expected to share the costs? Regardless, government
and taxpayers would be taking on billions of dollars from the
private sector to cover a large chunk of Canadians that already
have coverage. Why not focus on Canadians who are giving
up necessities to pay for prescriptions or skipping out on
them altogether? Given the amount of industry disruption
and political capital required to achieve this result, there may
be a better approach.
According to several studies, almost 15 per cent of Canadians
either lack prescription drug coverage or have coverage but
lack the financial means necessary to afford their prescriptions.
Policymakers should be focused on covering Canadians who
lack the means necessary to get the medicine they need, rather
than taking on additional costs to cover Canadians who already
have coverage. An achievable approach is setting up a program
that provides prescription drug coverage to the 15 per cent of
Canadians who currently do not have coverage and may find
benefits
DRUG PLANS SHOULD BE BASED ON AN
EVIDENCE-BASED FORMULARY THAT COVERS
THE MOST COST-EFFECTIVE DRUGS.
prescription drug costs unaffordable, providing them with a substantial
benefit.
There is a strong public policy imperative to cover Canadians
that do not have coverage for prescription drugs through their
employer or provincial plan, rather than uprooting existing programs
and creating one national plan. As seen in subsequent
interviews with the Finance Minister, the government is looking
at a fiscally responsible way of providing drug coverage to those
who need it most. In this scenario, existing plans could remain
in place and the reported 15 per cent of Canadians who have
no coverage get picked up by the federal government, on their
tab. The Canadian Institute for Health Information reports that
Canadians pay $7.3 billion out-of-pocket for prescription drugs
and an additional $5.94 billion out-of-pocket for non-prescription
drugs.
Drug plans should be based on an evidence-based formulary
that covers the most cost-effective drugs. We have proof that
when consumers are educated about prescription drugs and are
offered well-researched alternatives, they tend to make smarter
decisions that affect their finances and their health.
The government has taken a step in the right direction. Now
the most important thing is to define national pharmacare and
pursue an achievable
approach. Will the government
be successful? If
so, they will provide prescription
drugs for those
who can’t afford it without
disrupting an entire
industry and taking on
unnecessary costs. n
Helen Stevenson is the
former assistant deputy
Minister of Health
and executive officer
who oversaw Ontario’s
$4-billion drug program,
where she led prescription
drug reform with Bill
102, saving Ontarians an
unprecedented $1.5 billion
and helping spark reform
across Canada.
sherryyates / 123RF Stock Photo
HRPROFESSIONALNOW.CA ❚ APRIL 2018 ❚ 27