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Published: December 15, 2023
The Liberals and the New Democratic Party agreed to extend negotiations on pharmaceutical care until 2024, and the New Democrats said they agreed on a new target date of March 1 to submit the legislation.
The New Democratic Party's health critic, Don Davies, also said in a press statement that negotiations with the ruling party are still constructive and both sides are making progress.
Davies added in the statement: "We know that many people do not take the medications they need because they cannot afford them, and this situation is worsening as Canadians face rising living costs."
In this context, "the ongoing progress toward a comprehensive national pharmaceutical care program has become more important than ever. We must get this right."
A senior government source confirmed that both parties are taking more time to negotiate a deal.
The minority Liberal government relies on the votes of the New Democrats to pass legislation through a formal confidence and supply agreement signed by both parties. Under this agreement, the New Democratic Party agrees to support key government legislation in exchange for the Liberals advancing many of the New Democratic Party's policy priorities.
Also, according to the drafting of that agreement, one of the priorities of the national development plan is to pass the Canada Drug Care Act by the end of 2023 and then [commission] the National Drug Agency to develop a national formulary of essential drugs and a bulk purchasing plan by the end of the agreement year.
The Liberals have been under pressure for years to deliver pharmaceutical care. In 2019, an advisory council appointed by the Liberal government recommended establishing a comprehensive single-payer public pharmaceutical care system – first with an initial list of common and essential drugs and then with a comprehensive prescription formulary. The advisory council estimated that such a system would cost $15 billion annually once fully implemented.
The council also said that once a pharmaceutical care program is implemented, it would reduce the amount Canadians spend on prescribed drugs by about $5 billion annually.
It was proposed to pay $2 for common drugs and $5 for less common drugs, with fees waived for low-income or social assistance recipients.
In a recent report, the parliamentary budget officer estimated that the comprehensive single-payer drug plan would cost federal and provincial governments $11.2 billion in the first year and $13.4 billion annually over five years.
Budget office estimates indicated that savings at the overall economy level would be about $1.4 billion in 2024-2025, rising to $2.2 billion in 2027-2028.
However, projections of a higher-than-expected budget deficit in the next few years and lower economic growth in 2024 raise questions about whether Ottawa can currently afford pharmaceutical care.
Also, interest rates have reached their highest level in 20 years, and the cost of servicing the federal government's debt rose from $20.3 billion in 2020-2021 to $46.5 billion in this fiscal year.
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