On October 10, 2024, Canada’s Bill C-64, An Act respecting pharmacare (the “Pharmacare Act”) received Royal Assent. This legislation establishes a framework for a national universal pharmacare system, aiming to enhance the accessibility and affordability of prescription drugs and related products for all Canadians. We had previously discussed this new legislation in a roundtable which can be found here.
Key Objectives of the Pharmacare Act
- Universal Coverage: The Pharmacare Act mandates that the Minister of Health work towards providing universal, single-payer, first-dollar coverage for specific prescription drugs, particularly for contraception and diabetes. In addition, the Pharmacare Act will also establish a fund for diabetes devices and supplies to help Canadians manage and monitor their diabetes and administer their medication.
- Collaboration: The Pharmacare Act aims to emphasize the importance of working with provinces, territories, Indigenous peoples, and other partners and stakeholders to enhance public pharmacare coverage, fostering a cooperative approach to healthcare delivery and ensuring that diverse healthcare needs are met. This collaboration also aims to support the work of the Canadian Drug Agency to improve coordination within the pharmaceutical system in Canada and to ensure that the principles from the Canada Health Act guide efforts to enhance accessibility, affordability, and appropriate use of medications while working towards universal coverage across Canada.
- National Formulary Development: The Canadian Drug Agency is tasked with creating a list of essential prescription drugs to guide coverage under the new pharmacare system, ensuring consistency across the country. This list must be created no later than October 10, 2025.
- National Bulk Purchasing Strategy: A national bulk purchasing strategy will be developed to leverage collective buying power, aimed at improving accessibility, reducing drug costs for consumers, supporting the appropriate pharmaceutical products to improve the physical and mental health and well-being of Canadians, and providing universal coverage of pharmaceutical products across Canada. This strategy must be developed no later than October 10, 2025.
- Expert Committee: An expert committee will be established within 30 days after the day the Pharmacare Act received royal assent to provide recommendations on the operation and financing of the pharmacare program, ensuring informed guidance moving forward.
Next Steps
The Pharmacare Act provides a framework but most of the details relating to how it will be implemented have yet to be determined and require cooperation from various other stakeholders (including the provinces).
The next steps involve the Canadian Drug Agency developing the National Formulary, developing a bulk purchasing strategy, both due by October 10, 2025, while an expert committee will be formed within 30 days of October 10, 2024, to advise on the pharmacare program’s operation and financing.
Response to the Pharmacare Act
The overall response to the Pharmacare Act has been mixed, with some provinces expressing support while others have voiced opposition or caution. British Columbia has indicated support for the federal plan, signing a memorandum of understanding to provide coverage for its residents, although this coverage may differ from what is expected in other provinces. The federal government tabled Bill C-64 on February 29, 2024, and at the time the Ontario government remained non-committal, citing a need for more information before offering its support. In contrast, both Alberta and Québec have expressed their intention to opt out of the pharmacare program.
[View source.]
