The Interim Leader of the New Democratic Party (NDP), Don Davies, has expressed deep concerns regarding the Liberal government’s commitment to pharmacare. His comments were informed by a new report. The report estimates the annual cost of funding a global essential medicines list to be between $6 billion and $10 billion. Meanwhile, the government is full speed ahead on implementing the first phase of pharmacare. In part, Davies is asking for more transparency and clarity about what’s being planned.
The 2024 budget allocates $1.5 billion towards pharmacare. Confusingly, more than 60% of that funding is already spoken for, locked into existing agreements with British Columbia, Manitoba, Prince Edward Island and Yukon. The committee’s report conservatively estimates that implementation of pharmacare will cost about $3 billion annually. This estimate includes savings from competitive drug purchasing and existing coverage.
Pharmacare legislation received royal assent a little over a year ago. This milestone was culminated in a supply-and-confidence agreement between the NDP and the Liberals. Yet, despite this progress, Davies has been vocal in condemning the government for propagating mixed messages about what it really wants to accomplish. He pointed to the government’s own “clear commitments” on pharmacare but has still to complete the last of their test agreements still undone. “They continue to try to hoodwink Canadians into thinking they’re in favour of making sure every Canadian can get the medication they need with their public health care system or card,” he said.
The report called for 31 recommendations, including: The most important recommendation is to create an arms-length organization to administer the list of essential medicines, like the list that governs more than 90% of prescriptions in Canada. Davies noted the need for these steps especially amidst economic tensions with the United States. He contended that the current trade war risked harming jobs and insurance coverage for thousands of Canadians. This lucky coincidence had the potential to greatly increase pharmaceutical spending as well.
“It’s almost like they’ve rejected the report before they’ve even studied it.” – Don Davies
Although the federal government has received the pharmacare report, it has so far failed to provide a clear plan of action for implementation. This lack of clarity has caused confusion and concern among NJ stakeholders and advocates for universal healthcare. The committee’s report frames pharmacare as a “nation-building investment purposely constructed from Canadian-made principles,” calling upon Ottawa to fully fund the essential medications list.
Ms. Marjorie Michel, a government spokesperson, admitted that developing such a program would be challenging. “As you know, we have a lot of independent expert panels and they have their views, but it is non-binding for the government,” she noted, indicating that while expert recommendations are considered, final decisions rest with policymakers.
Davies adamantly believes that the government needs to be bold and take action by introducing legislation that provides specifics around the proposed pharmacare policy. He believes that enshrining in law the right to essential medicines is crucial for ensuring equitable access for all Canadians.
