Canada Passes National Pharmacare Legislation
As of October 10, the Government of Canada officially passed legislation for national pharmacare, marking a significant milestone in health care access for Canadians. Once agreements between the federal and provincial governments are reached, this new legislation will enable citizens to obtain essential treatment for diabetes and contraception options with reduced out-of-pocket costs, a move that aims to enhance health equity across the nation.
In the first phase of implementation, the Minister of Health, Mark Holland, will collaborate with provinces and territories to establish agreements for universal, single-payer access to contraception and diabetes medications. A comprehensive list of covered diabetes medications and contraception options is available on the Government of Canada’s website.
As the government moves forward with these pivotal changes, the national pharmacare initiative intends to reshape the health care experience for millions of Canadians, ensuring that vital medications are accessible to all, regardless of their financial situation.
What does this mean for you?
Although the legislation has received Royal Assent, details of implementation are still being worked out. As a result, your group benefits plan is not affected. The timeline for when coverage will be fully implemented remains uncertain but we’re closely monitoring the situation and will keep you updated as provincial agreements are finalized and more details become available.
“Everyone in Canada deserves access to the care they need, including to prescription medications. Our plan for universal access to contraception means reproductive freedom and choice and access to diabetes medication is a transformational step towards improving health outcomes and health equity in Canada.”
- Mark Holland, Minister of Health
FACTS
• In Canada, there are 3.7 million people living with diabetes
• Up to nine million women and gender diverse people in Canada will have better access to contraception • Many Canadians lack adequate insurance for prescription medication. In 2021, one in five adults reported insufficient insurance to cover medication costs
• The Act will establish a fund for diabetes devices and supplies to aid Canadians in managing and monitoring their diabetes and administering their medications
NEXT STEPS
Consultation process:
The Government of Canada will engage with provinces, territories, Indigenous Peoples, and other stakeholders to discuss the next steps toward implementing universal pharmacare. The aim is to enhance access to and affordability of essential medications.
Formation of the expert committee:
The Pharmacare Act mandates the establishment of a committee of industry experts. This committee will provide recommendations on the logistical requirements necessary to operate and fund a national, universal, single-payer pharmacare system.
Expanding medication coverage:
This legislation is intended as the first phase of a national approach to affordable access to medications as part of Canada’s publicly funded system. It sets the foundation for expanding the range of covered medications in the future.
If you have any questions, please contact your advisor or group benefits consultant.
WAYNE FARROW
Over his 40 year career, Wayne has worked with hundreds of Canadian corporations to design and manage Retirement Savings Programs involving thousands of plan members.
His hands-on approach and involvement at the Plan Member level gives him a unique ability to see things through the eyes of all the stakeholders and most importantly, the Plan Member.
He has literally been there, and done that, on the shop floor, not the 52nd floor.
This experience has allowed him to simplify the plan design and management of retirement programs in such a way that the most important elements are clearly understood by both the Plan Sponsor, and the Plan Member.
As he always says, “if you can’t explain it to an eight year old, then you don’t understand it.”
You can contact Wayne at: wayne@farrowpension.ca