Estimated cost of universal public coverage of prescription drugs in Canada

Should Developed Countries, Including Canada, Provide Universal Access to Essential Medications through a National, Publicly Funded and Administered Insurance Plan?

“…In 2015, Morgan and others 11 published an analysis modelling a national, publicly funded and administered health insurance system for Canada. These authors found that, although government costs could increase by about $1 billion, the projected combined cost savings from private and public sectors would be substantial, ranging from $4.2 billion to $9.4 billion in the worst-case and best-case scenarios, respectively.…”

“…These authors found that, although government costs could increase by about $1 billion, the projected combined cost savings from private and public sectors would be substantial, ranging from $4.2 billion to $9.4 billion in the worst-case and best-case scenarios, respectively. 11 The analysis accounted for increased usage of medications with universal drug coverage, transfer of private sector costs to the public sector, cost-effective product selection with a national formulary, and consolidation of drug purchasing power. While the study by Morgan and others 11 accounted only for direct cost savings, it is expected that a national pharmacare strategy would have indirect economic benefits as well.…”

“…11 The analysis accounted for increased usage of medications with universal drug coverage, transfer of private sector costs to the public sector, cost-effective product selection with a national formulary, and consolidation of drug purchasing power. While the study by Morgan and others 11 accounted only for direct cost savings, it is expected that a national pharmacare strategy would have indirect economic benefits as well. First, improved prescribing practices with guidance by a national formulary would reduce drug-related adverse reactions and hospital admissions, resulting in up to $5 billion in cost savings.…”

Expanding Canadian Medicare to include a national pharmaceutical benefit while controlling expenditures: possible lessons from Israel

“…Proponents argue that this would significantly enhance access to pharmaceuticals and make a major contribution to the health of Canadians (Morgan et al, 2015a(Morgan et al, , 2015bCMA, 2016). Opponents voice concerns about affordability and the impact on governmental expenditures, though these are disputed by proponents (Morgan and Boothe, 2016).…”

“…Some of these could be relevant for provincial and even private pharmaceutical plans; however, their effect would probably be greatest in the case of a Canada-wide pharmacare benefit. Morgan et al (2015aMorgan et al ( , 2015b have estimated the cost of a universal drug benefit for Canada. They found that 'Universal public drug coverage would likely yield substantial savings to the private sector with comparatively little increase in costs to government'.…”