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 The council said the plan should be implemented no later than Jan.
1, 2027, with coverage for essential medicines in place by Jan. 1,
2022.
Canada is the only country with a universal health care system that
does not include universal coverage for prescription drugs. Most
prescriptions are paid for through employer-funded drug plans, while
some are covered by government programs for the elderly, or people
with low incomes or very high costs.
"We can't tinker with what exists. We have to transform it," council
chair Eric Hoskins, a former Ontario health minister, said at a news
conference.
The report said public and private drug providers had told the
council the system is "near the breaking point."
Canadian Prime Minister Justin Trudeau's Liberal government has
promised some kind of national pharmacare program, and its approach
may be a key issue in the country's October election.
Minister of Health Ginette Petitpas Taylor said in a statement that
the government would "carefully study" the recommendations "over the
coming months."
The council estimated the national pharmacare would cost the federal
government an additional C$3.5 billion at its launch in 2022, and
C$15.3 billion in 2027.
If implemented in full, the plan would likely cut into profits of
insurers and drugmakers in Canada, while saving employers and
patients money.
Shares of three major insurers listed in Canada, Manulife Financial
Corp, Sun Life Financial Inc and Great-West Lifeco Inc, all dropped.
'SPACE' FOR THE PRIVATE SECTOR
Canada's drug insurance system is a patchwork of more than 1,000
public and 100,000 private plans, which can make it difficult for
smaller payers to negotiate discounts with pharmaceutical companies.
The Canadian Life and Health Insurance Association (CLHIA)urged the
government to work with private plans to negotiate lower drug
prices. CLHIA president Stephen Frank said in a statement that all
Canadians can have access to the medications they need "without
putting at risk what's working today."
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Hoskins said costs associated with the proposed program are already
being paid by Canadians. By 2027, total prescription drug spending
would be about 10% lower with the proposed changes, Hoskins said.
Canadians spent C$34 billion ($25.6 billion) on prescription
medicines in 2018.
Hoskins said he envisions "space" for the private drug insurance
sector after a universal public program is rolled out.
"The profit that insurance companies generate through drug insurance
plans is modest, I would describe it, compared to other aspects of
benefits provided," he said.
Pamela Fralick, president of pharmaceutical industry group
Innovative Medicines Canada, said whatever path the government
chooses, "no Canadian should be worse off than they are right now."
NEW DRUG PRICE RULES IN THE WORKS
Speaking after the report's release, Petitpas Taylor said work on
the Canadian government's proposal to reduce patented drug prices is
still underway, and "movement" would come in the very near future.
New regulations, set to go into effect in January 2019, were delayed
amid heavy lobbying from drugmakers.
Patented drug prices in Canada are among the highest in the world.
Government surveys show some 20% of Canadians are uninsured or
under-insured.
In its most recent budget the Trudeau government promised modest
changes, including new funds for expensive drugs that treat rare
diseases.
(Reporting by Kelsey Johnson in Ottawa and Allison Martell in
Toronto; Editing by Bill Berkrot)
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