Canada is going to set a National Drug Agency as mentioned by the finance ministry on Tuesday. This agency will help in the cost-cutting of prescriptions. Moreover, it will also broaden the state-funded healthcare program. Let’s discuss the necessity and future of this new Canada Drug System.
Canada does not cover prescription drugs as other countries with universal healthcare. Thus, the Canadian public has to lean on public and private insurance companies.
Ottawa said that the cost of branded medicines in Canada is 20% high than as compared to the other developed countries. Even 20% of the Canadian public doesn’t have any insurance.
This Canada Drug Agency will work in a balanced manner in order to have effective prescription drugs at negotiable cost. In one year, this will reduce the medication cost by C$3 billion. However, Canada has spent a total of C$ 33.7 billion in the year 2018 for drug prescription.
In budget speech, finance minister Bill Morneau said, “These measures alone will not fully close the gap for people who need prescription drugs and can’t afford them. But they do mark important first steps on the way to a system that helps all Canadians get the medicine they need.”
Additionally, Ottawa will also make a national strategy to access the branded medicines used in rear diseases. However, it will be able to invest C$1 billion in just two years starting from the financial year 2022-23.
Pamela Fralick said, “The industry is very aware of the sustainability issue on drug costs. I think there will be some very good conversations coming up in the next few weeks and months.”
Negotiation Scope in New Canada Drug System:
According to the Canadian Life and Health Insurance Association, it was attentively optimistic of the actions.
Chief Executive Officer Stephen Frank said, “We believe it leaves scope there for them to be negotiating on behalf of all Canadians, which includes private and public payers.” He added, “There’s no way to snap your fingers and cut the price of drugs.”
Reportedly, in order to cover drugs cost, the government was all ready to expand the healthcare system.
At last, all these plans are dependent upon the last report of a Canadian advisory council who has been studying the drug prescription coverage.
So, this was everything about the new Canada Drug System mentioned in the Budget.
