Federal cost of a national pharmacare program .: YN5-127/2017E-PDF

“In September 2016, the House of Commons Standing Committee on Health asked the Parliamentary Budget Officer (PBO) to provide a cost estimate of implementing a national Pharmacare program. The Committee provided the program’s framework, including the inclusive list of drugs to be covered by Pharmacare based on Quebec’s formulary, eligibility requirements, co-payment levels, and eligibility requirements for co-payment exemptions. This paper estimates the cost to the federal government of implementing this particular framework for Pharmacare. It incorporates PBO’s assumptions of the potential savings resulting from a stronger position for drug price negotiations, consumption or behavioural responses of providing coverage, and potential changes in the drug market composition. In addition, this paper provides five-year projections of these federal costs. However, the costs associated with a single administrator of drug benefit claims when compared to multiple administrators both public and private are not considered"--Executive summary, p. 1.

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