On October 10, 2024, Canada’s federal government passed legislation that will introduce pharmacare, a program of national universal drug coverage. The federal government must now take steps to implement the first phase of pharmacare, including reaching agreements with the provinces and territories to cover a range of contraceptives and diabetes medications.   

Pharmacare Act comes into force

In February 2024, the federal government tabled Bill C-64, An Act respecting pharmacare (the Pharmacare Act). The Pharmacare Act sets out principles for the implementation of national universal drug coverage in Canada, including a specific commitment to provide coverage for contraceptives and diabetes medications (our report here).  

Since February 2024, Bill C-64 been progressing through Parliament. On October 10, 2024, the bill completed its final reading in the Senate and received Royal Assent. The Pharmacare Act is now in force and its first phase is already funded: CDN$1.5 billion over five years has been set aside to launch pharmacare (our report here). 

Next steps for pharmacare in Canada

After the Pharmacare Act became law, the federal government announced that the Minister of Health (Minister) will negotiate with the provinces and territories to reach bilateral agreements to provide universal, single-payer, first-dollar access to a range of contraceptives and diabetes medications.  One province – British Columbia – previously announced its intention to enter such negotiations (our report here).  Health Canada has published lists of the specific contraceptives and diabetes medications that the federal government intends to negotiate.

Royal Assent also started the clock on other steps stipulated in the Pharmacare Act, including:

  • Within 30 days, the Minister must establish a committee of experts “to make recommendations respecting options for the operation and financing of national, universal, single-payer pharmacare”.  The committee must provide these recommendations within a year of the Act receiving Royal Assent;
  • Within a year, the Canada Drug Agency must develop “a list of essential prescription drugs and related products to inform the development of a national formulary” and “a national bulk purchasing strategy for prescription drugs and related products”; and
  • Within a year, the Minister must publish “a pan-Canadian strategy regarding the appropriate use of prescription drugs and related products”.

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