Implementation of a National PharmaCare Program in Canada

Running head: IMPLEMENTATION OF A NATIONAL PHARMACARE PROGRAM IN CANADA 1
Implementation of a National PharmaCare Program in Canada.
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IMPLEMENTATION OF A NATIONAL PHARMACARE PROGRAM IN CANADA 2
IMPLEMENTATION OF A NATIONAL PHARMACARE PROGRAM IN CANADA
Canada's medical system is dynamic. The medical system was founded based on principles of
portability, universality, public administration accessibility, and comprehensiveness and it faces
more challenges due to its expensiveness. The healthcare system is assigned to the provinces,
and the national government only retain the responsibility of members of the state and the armed
forces. It faces a major challenge in terms of access by Canadians. The healthcare system faces a
major challenge in providing access to medicine to Canadians. A suitable solution will be a
universal drug coverage program.
Prescription drugs are not consistently covered across the country and many citizens cannot
afford the prescriptions they need. According to statistics, about $30 billion dollars was spent in
2016 to fill more than 60 million prescriptions (Canada & Hoeppner, 2010). Pharmacare would
be a suitable solution to this. The system would provide a universal insurance coverage for all
prescriptions. Apart from insured health services such as hospital care, pharmacare falls within
that group in many developed countries. Drug prices have continued to rise in making many
Canadian homes have to choose between paying for prescription drugs and paying for other basic
necessities. In 2018, an Advisory Council on the Implementation of National Pharmacare
famously known as the Council was established to provide advice on how to implement national
pharamacare in an affordable manner.
Medicine is an integral part of the healthcare system. Canada's universal health care system is
unique from that of other developed countries such that prescription used outside the hospital is
not covered. From the onset of Medicare in the 1960's, the intention was to eventually cover
medicine. However, a challenge in reaching a consensus presented itself. This was mainly due to

IMPLEMENTATION OF A NATIONAL PHARMACARE PROGRAM IN CANADA 3
a variation in public policy and economic as well as fiscal conditions. The absence of coverage
presents a major challenge. Studies conducted note of a major disparity. The Standing
Committee on Health recommended the establishment of a universal single-payer drug
prescription system.
In Canada, basic Medicare covers prescription given only in hospitals. Coverage of medicine
outside hospital varies. For example, many Canadians and their dependents are covered under an
employer-funded private benefit plan. Out-of-pocket pay is very common among low-income,
self-employed and part-time employee Canadians.
Prescription coverage varies depending on the province and territory, across the coverage of the
region depends on age-group and income group. Some combine both. Its organization presents
serious challenges to Canadians, according to the Conference Board of Canada, an estimated
95% of Canadians are qualified for prescription coverage. Affordability presents a serious
challenge due to annual maximums, co-payments and deductibles. This has resulted in
additional doctor visits and admissions (Law, 2018). Furthermore, it has led to more premature
deaths among working-class Canadians (Lopert, Docteur, & Morgan, 2018).
Expenditure on drugs has grown significantly from an estimated $2.6 billion in 1985 to 33.8
billion in 2017 (Canadian Institute for Health Information, 2017). Canada spends more than
almost any other country in the OECD member countries on prescription drugs. The combined
coverage in Canada is not suitable for innovative drugs. A large burden is placed on households,
employers and governments due to increasing costs. According to the Patented Medicine Prices
Review Board, Canadians spend 20% more than the OECD median on innovative medicine. The
Patented Medicine Prices Review Board (PMPRB) allows the federal government to assert price
controls on innovative drugs. The government seeks to give PMPRB the means of protecting