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Pharmacare Reforms In Canada

Decent Essays

The current system is inefficient, inequitable and unsustainable in the long run because: (1) it is unable to accommodate for the entire Canadian population; (2) it requires Canadians to pay a disproportionate amount of their income to access medications; and (3) governments are unable to contain the drug cost increases (5). Therefore two recommended reforms are described in order to achieve the goal of accessibility and equity.

Option One: Create an equitable pharmacare program that includes medically necessary prescription drugs covered by the public health care system to improve access for patients
The Canadian government must implement an equitable national pharmacare program in which medically necessary prescription drugs are covered …show more content…

Universal public coverage reduces the need for work-related private drug insurance plans, which eliminates the need for the tax subsidies currently given to encourage employers to offer such plans (10). This could save the private sector approximately $8.1 billion (10). This relieves employers the responsibility for workers’ health care costs, and reduces disputes and strikes between employees in negotiating plans. With increased access to prescription drugs, there may be reduced instances of ED visits, thus, allowing more government spending on other resources in the long-term …show more content…

According to a study, researchers estimated that the total extra cost to government of providing universal pharmacare could range as high as $5.4 billion a year (11). However, through bulk purchases of medication and other measures, this could be reduced to $1 billion (11). In addition, it is possible that people will misuse or overuse medication if it is easily accessible. However, it is suggested that healthy individuals have no intrinsic value in consuming additional prescription drugs, and studies show little evidence to suggest that excess coverage of prescription drug costs is the root cause of these problems (6).

Option Two: Control costs of drugs through bulk purchasing for patented and generic drugs
A strategy for accessing new treatments at an affordable price for all Canadians is through a bulk purchasing alliance (12). Bulk purchasing involves provincial governments collectively purchasing medicines in larger volumes for the purpose of price reductions from manufacturers (11). Provincial governments are collectively the largest purchasers of drugs in Canada, hence the concern for price increases of drugs (5). Federal leadership is required to coordinate a national approach to bulk purchasing. The newly elected Government of Canada promised to work with provincial and territorial governments to buy patent and generic drugs in bulk through the

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