It’s time for Universal Pharmacare
Canada is the only country with universal health-care system that does not cover drugs
“The Canadian Federation of University Women urges the Federal, Provincial and Territorial governments of Canada to work collaboratively to deliver Universal Pharmacare, a publicly funded and financially sustainable drug plan that would cover medically necessary prescription drugs for all Canadians, regardless of their ability to pay.”
This is the text of the resolution passed by the CFUW voting body at its 2017 Annual General Meeting.
Canada remains the only country with a universal health-care system that does not cover prescription medications. Access to essential medicines is part of the right to the highest attainable standard of health, which became part of the Universal Declaration of Human Rights as far back as 1948. When universal health care was implemented in Canada in the 1960s, the original intent was to add Universal Pharmacare as the next phase, but this was never accomplished for a variety of reasons. It is estimated that 91 per cent of Canadians support a Universal Pharmacare Plan.
Currently one 10 Canadians cannot afford to fill prescriptions. This is estimated to cost the health-care system up to $9 billion annually in repeat hospital visits. Nonadherence to prescribed drug therapy for chronic conditions alone accounts for 5 per cent of hospital admissions and physician visits, and contributes $4 billion to health care costs each year. As well, the more than $6 billion in out-of-pocket annual spending on pharmaceuticals places millions of Canadians in the impossible situation of choosing between medically necessary drugs and other life essentials.
The current patchwork system of drug coverage is not sustainable. Approximately 29 per cent of Canadians are covered by government plans while 61 per cent rely on private insurance and 10 per cent have no coverage. These plans are inequitable, inadequate and expensive while leaving 3.6 million Canadians without any drug coverage at all. The current situation disproportionately affects lower-income households who are less likely to be eligible for public plans or have employer-provided benefits due to parttime and/or precarious work.
Inequitable access to prescription medications has a profound impact on our economy. Canadians who cannot access the medication they require to manage their conditions are unable to fully contribute to society and place undue burden on our health-care system to the detriment of us all.
Canadians pay the second highest costs for prescription medication of any OECD country. The Federal Minister of Health is mandated to reduce drug costs by bulk buying and exploring the need for a national drug formulary. The pan-Canadian Pharmaceutical Alliance founded in 2010 is a federal alliance to negotiate price reductions for brand name and generic drugs. To date they have been able to reduce the cost of 120 drugs for publicly funded plans. While this is an important first step in making medically necessary drugs more accessible to Canadians, much more can and should be done.
There is a mounting body of evidence backed by past national commissions, stakeholders and public interest groups supporting the financial, health, economic and emotional benefits of implementing Universal Pharmacare. Canadians are fiercely proud of our health-care system and this is the next logical step to ensure the health of all Canadians. In order to be successful, however, it must be based on the same core principles of universality, accessibility, safety, and portability.
CFUW believes that Universal Pharmacare can be self-funding. A recent study concluded that under a publicly-funded program, a single universal drug plan in Canada would cost $7.3 billion less per year than the current situation and could therefore save Canadians between $5 and $11 billion annually. Moreover, it would also address inequitable access and ensure proper safety and prescribing practices for prescription medications.
We believe such a system should be funded to cover all costs, so that there are no user fees or co-payments, which discourage use of essential medicines by those who cannot afford them and compromise the integrity of our universal health-care system.
This is a long-overdue and affordable step that will help Canada maintain its status among other developed countries in ensuring the best possible health outcome for all Canadians.
Linda Gill produced this commentary on behalf of The Canadian Federation of University Women’s Advocacy Committee. The Canadian Federation of University Women is a non-partisan, self-funded organization comprised of 100 clubs across Canada. Founded in 1919, CFUW has advocated to improve the status of women, and to promote human rights, public education, social justice and peace. CFUW awards over $1 million annually in scholarships, bursaries and fellowships to help women and girls pursue post-secondary education. Our organization and its international affiliate Graduate Women International (GWI) hold special consultative status with the United Nations and belong to the Education Committee of the Canadian Commission for UNESCO. For the full text and background information on this resolution, please visit our website at www.cfuw.org.