Health Minister Mum on Cost of Pharmacare Plan Covering Contraception and Diabetes Meds

Mark Holland, Canada's Minister of Health makes a health care announcement in Calgary, Alta., on Dec. 21, 2023. The Canadian Press/Todd Korol

Health Minister Mark Holland has introduced the federal government’s pharmacare legislation that will cover contraception and some diabetes medications, but would not provide details of the potential costs of such a program.

“I’m going to get back to you on that,” Mr. Holland said when asked by reporters about the potential costs during a press conference on Feb. 29.

“Obviously I’ve had conversations with the finance minister, but one of the things I want to be careful of is that there are still ongoing pieces with provinces where that’s moving.”

Bill C-64, dubbed “An Act respecting pharmacare,” is the first phase of national universal pharmacare in Canada. If Parliament passes the legislation, Ottawa will begin negotiating with the provinces and territories to provide coverage for numerous contraception and diabetes medications.

Parliamentary Budget Officer Yves Giroux previously estimated in October 2023 that a single-payer universal drug plan would cost federal and provincial governments an additional $11.2 billion in the first year, and $13.4 billion in five years. However, the report said the plan would lead to economy-wide savings, as it would allow for better price negotiations that would ultimately lower their prices.

Part of the legislation seeks to establish a fund for Canadians with diabetes for access to medication, as well as syringes and glucose test strips. According to the federal government, 3.7 million Canadians with diabetes, around one in four, have reported they are not following their treatment plans due to high costs.

During a press conference on Feb. 29, Mr. Holland said Canadians who cannot afford medication could end up with serious health complications like amputations, strokes and heart attacks.

“That’s not just a matter of social justice. Imagine the cost involved in that to our health system,” he said.

Bill C-64 will also provide 9 million Canadians of reproductive age with access to contraception.

While the government has not yet chosen the exact contraception types covered by the bill, it is promising that “a comprehensive suite” of drugs and devices will eventually be covered in the provinces and territories that sign on.

Alberta and Quebec to Opt Out

The pharmacare bill was created out of lengthy negotiations with the NDP, as a condition of its supply-and-confidence agreement that keeps the Liberals government in power until 2025. NDP Leader Jagmeet Singh threatened to pull out of the agreement in February as the deadline for the agreement neared, but on Feb. 23 the parties announced they had reached a deal.

NDP Health Critic Don Davies told reporters that his party had laid down a “pretty hard red line” that a deal needed to be reached, which allowed the parties to reach a compromise on the legislation.

During a press conference on Feb. 29, Conservative Leader Pierre Poilievre did not give his stance on the incoming pharmacare legislation. “We'll see what the program will deliver,” said Mr. Poilievre, adding that provinces like Alberta and Quebec should have the right to pull out of the agreement.

Both governments have announced that they plan to opt out of the pharmacare plan, with Alberta Health Minister Adriana saying on Feb. 26 that the province already has “robust” coverage of medications through provincial programs, and the office of Quebec Health Minister Christian Dubé saying Quebec would “demand the right to opt out with full compensation.”

When asked about the two provinces potentially opting out of the plan, Mr. Holland said he wanted to ensure “every Albertan has access to universal contraceptives and to the diabetes medication they need,” and that he respected Quebec’s concerns around jurisdiction and would attempt to find solutions.