The report points out the need to address gaps in coverage instead
A think tank has called on the federal government to move away from plans to establish a single-payer pharmacare program, opting to look into the current gaps in coverage instead.
C.D. Howe Institute Associate Director of Research Rosalie Wyonch has released a report detailing the need to refocus Ottawa’s plans when it comes to coverage since fiscal uncertainty was still being influenced by the imposed tariffs, according to The Canadian Press.
In the report, Wyonch stated that the federal government needed to pursue a universal coverage for Canadians that is sustainable fiscally while also leaning into the advantages that came with the mixed public-private system currently set in place.
The Pharmacare Act, which was first passed in February 2024 and became a law last October, served as part of the government’s commitment to implementing a national universal pharmacare for Canadians. It gave coverage to all Canadians for the cost of their prescription drugs, even if they already have private insurance.
Wyonch noted in the report that Quebec should serve as a model to be followed because it had a public prescription drug insurance program that was mandatory for their residents that do not have private insurance.
With the passing of The Pharmacare Act as law, it was met with criticism from several business organizations as well as policy scholars because of its costs and disruptive effect to private insurance, according to The Hub.
Notably, the first phase of the pharmacare program gave a universal, single-payer, first-dollar coverage of contraceptives and a few diabetes medications that patients could avail with little to no cost. In order to fund the two medication categories, the federal government is required to negotiate deals with provinces and territories.
However, the first phase of the program is not fully funded as Manitoba, British Columbia, Prince Edward Island, and Yukon were the only jurisdictions that sign deals with the federal government to provide coverage for the medications.
