The Liberals and NDP have agreed to extend pharmacare negotiations until 2024, while the New Democratic Party says they have agreed to a new target date of March 1 for introducing the bill.
NDP Health Critic Don Davis said in a media statement that negotiations with the ruling party remain constructive and both sides are making progress.
“We know that many people are not taking the medications they need because they can’t afford it, but this is only getting worse as Canadians struggle with the high cost of living,” Davis said in a statement. ” he said.
“Given that backdrop, it is more important than ever that we continue to move towards a universal national pharmacare program. We need to get this right.”
Government officials acknowledged that both sides are taking more time to negotiate a deal.
The minority Liberal government relies on New Democratic Party votes to pass legislation through a formal confidence and supply agreement signed by both parties. Under the agreement, the NDP agrees to support key government bills in exchange for the Liberals advancing several NDP policy priorities.
According to the language of that agreement, one of the NDP’s priorities is to “pass the Canada Medicines Act by the end of 2023; [task] The National Medicines Agency called for a national formulary and bulk purchasing plan for essential medicines to be developed by the end of the agreement. ”
The Liberal Party has been under pressure for years to deliver on pharmacare. In 2019, an advisory committee appointed by the Liberal government first created an initial list of common and essential medicines, then created a comprehensive formulation to create a universal single-payer public pharmacy. It was recommended that a system be established. The advisory committee estimated that such a system, if fully implemented, would cost $15 billion annually.
The council also said that once implemented, the Pharmacare Program would reduce the amount Canadians spend on prescription drugs by about $5 billion annually.
We proposed a copay of $2 for common medications and $5 for less common medications. Fees are waived for people on low incomes and those receiving social assistance.
In a recent report, Congressional budget officials estimated that a single-payer universal drug plan would cost federal and state governments $11.2 billion in the first year and $13.4 billion annually over five years. .
The PBO estimates that economy-wide savings will be around $1.4 billion in 2024-25, rising to $2.2 billion in 2027-28.
But projections for higher-than-expected budget deficits in the coming years and slower economic growth in 2024 are raising questions about whether Ottawa can afford pharmacare now.
Interest rates are at 20-year highs, and federal debt servicing costs have soared from $20.3 billion in 2020-21 to $46.5 billion this fiscal year.
