Life and health insurance body agrees with national pharmacare, but input of insurers is critical to any agreement
Earlier this month, Ontario Minister of Health and Long-Term Care Dr. Eric Hoskins issued a statement discussing plans for national pharmacare. Responding to the Auditor General’s report on the province’s drug programs, Hoskins called on the provincial and federal governments to come together and “help ensure affordability for government and access for patients."
The statement outlined how the Pan-Canadian Pharmaceutical Alliance had successfully lowered drug prices for people in Ontario and across Canada, resulting in $1.3 billion in annual savings.
Hoskins added that Canada is the only industrialized country with universal health insurance, but no national pharmacare strategy, which was impacting affordability for government and access for patients.
Should a national strategy be devised, the input of the health insurers will be crucial. CLHIA president and CEO Stephen Frank explains how national pharamacare is a regular topic of discussion whenever the industry meets with government.
“We agree that the current system needs to be improved, and there are things we need to do in the short term to improve it,” he says. “We continue to talk to the ministry and other governments on the whole PCPA (pan-Canadian Pharmaceutical Alliance) process and the importance of bringing all the payers into the fold so we can get some of the savings you get from bulk buying.”
Frank is in agreement with many of the points Hoskins and those that advocate for national pharmacare make, but just how it can be achieved is still being debated by the various stakeholders.
“On a national strategy, we are aligned on some of the core elements, but we want to make sure to protect the benefits that come from a mixed system,” he says. “On consumer choice, flexibility and speed to market – you don’t want to lose that in any form. That’s the dialogue we are having with the government.”
Most countries in the world have a mixed healthcare system of private and public, and while Canada has its own unique set of circumstances, Frank believes there are lessons to be learned at other developed nations.
“If you look to other countries like the Netherlands, Germany, South Korea, Japan or Australia, they all have mixed delivery of pharmaceuticals,” he says. “What is interesting for us is that they all jointly negotiate prices and that benefits everyone, while keeping the flexibility and choice that comes with a mixed system.”
On issues of health, prevention really is the preferred option, which is why the insurers have poured so much resources into different programs to encourage healthier living. Sickness is an unfortunate fact of life, however, so being able to deliver medication in an affordable and timely manner should be a priority for providers and governments alike.
“If you look at what the insurers are doing, many if not all have strategies to help their plan sponsors with wellness at work and other preventative strategies,” says Frank. “It’s a huge focus for the industry. But there are always going to be people for whom that isn’t enough, so you need a robust system to give them access to the medications they need.”
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The statement outlined how the Pan-Canadian Pharmaceutical Alliance had successfully lowered drug prices for people in Ontario and across Canada, resulting in $1.3 billion in annual savings.
Hoskins added that Canada is the only industrialized country with universal health insurance, but no national pharmacare strategy, which was impacting affordability for government and access for patients.
Should a national strategy be devised, the input of the health insurers will be crucial. CLHIA president and CEO Stephen Frank explains how national pharamacare is a regular topic of discussion whenever the industry meets with government.
“We agree that the current system needs to be improved, and there are things we need to do in the short term to improve it,” he says. “We continue to talk to the ministry and other governments on the whole PCPA (pan-Canadian Pharmaceutical Alliance) process and the importance of bringing all the payers into the fold so we can get some of the savings you get from bulk buying.”
Frank is in agreement with many of the points Hoskins and those that advocate for national pharmacare make, but just how it can be achieved is still being debated by the various stakeholders.
“On a national strategy, we are aligned on some of the core elements, but we want to make sure to protect the benefits that come from a mixed system,” he says. “On consumer choice, flexibility and speed to market – you don’t want to lose that in any form. That’s the dialogue we are having with the government.”
Most countries in the world have a mixed healthcare system of private and public, and while Canada has its own unique set of circumstances, Frank believes there are lessons to be learned at other developed nations.
“If you look to other countries like the Netherlands, Germany, South Korea, Japan or Australia, they all have mixed delivery of pharmaceuticals,” he says. “What is interesting for us is that they all jointly negotiate prices and that benefits everyone, while keeping the flexibility and choice that comes with a mixed system.”
On issues of health, prevention really is the preferred option, which is why the insurers have poured so much resources into different programs to encourage healthier living. Sickness is an unfortunate fact of life, however, so being able to deliver medication in an affordable and timely manner should be a priority for providers and governments alike.
“If you look at what the insurers are doing, many if not all have strategies to help their plan sponsors with wellness at work and other preventative strategies,” says Frank. “It’s a huge focus for the industry. But there are always going to be people for whom that isn’t enough, so you need a robust system to give them access to the medications they need.”
Related stories:
Brand-name drug firms still not abiding by R&D promise: report
Universal coverage a real possibility, says noted academic
