Pharmacare - Midterm

Question 1

Inequitable access to drugs

Answer 1

• Less than half of drug expenditures come from public spending
• Canada is 2nds (behind the US) in private drug insurers in drug expendatures
• 25% of Canadians have no drug coverage
• 10% of Canadians have admitted to not filling prescriptions because of lack of coverage

Question 2

History

Answer 2

• The Royal Commission on Health Services in 1964 recommended universal insurance plans for all Canadians
• National health reform in 1997 recommended universal drug coverage
• The Romanow Commision in 2002 recomended drug coverage as a first step in Pharmacare
• 2010 Economic Case for Universal Pharmacare report showed that Canada would save 12 - 42% on drug spending with a public program

Question 3

Why Pharmacare?

Answer 3

• Save Canadians 10.7 billion in drugs
• Make access to medicines more equitable in Canada
• Improve health outcomes

Question 4

Private Insurance

Answer 4

• Private insurance is an expensive and fragmented solution
• Half the population is covered by employers
• Drug premiums rising due to insrance companies compensated by expenditures

Question 5

Expensive drugs and rising costs

Answer 5

• Canadians pay 30% more than the OECD average

- 94% of Sweden’s drug costs are covered publicly, opposed to Canada’s 45%

Question 6

Challenges

Answer 6

• Generic drug prices have dropped, offset by an increase in private plans
• Bulk Purchasing does not save money as it only saves money for those with private plan
• Drug shortages from province to province

Question 7

Reform 1 - Include prescription drugs in the public health care system

Answer 7

-Offered to the entire Canadian population. Start with co-payments from the province and federal government, increased income tax and ending generous tax subsidies for private insurance

Question 8

Reform 2 - Standardized Drugs

Answer 8

Standardized drugs for all provinces

-Testing standards to be used across Canada

Question 9

Reform 3 - Comparative drug pricing

Answer 9

Canada pays 70 more than other OECD countries for their drugs

• Companies that made comparable drugs would be rewarded with the country buying that drug for 100% of its population
• Brand name drug in Canada cost 800, in New Zealand cost 15.

Question 10

Increase in government spending on Pharmasuticals

Answer 10

• Increasing aging population

- New drugs cost more than old ones