Thank you.
Mr. Chair, committee members, on behalf of the Heart and Stroke Foundation, I'd like to thank you for the opportunity to appear before you and to share our perspectives on the development of a national pharmacare program in Canada. My name is Lesley James, and I'm the senior manager of health policy with the Heart and Stroke Foundation.
First and foremost, I want to express gratitude to Parliament for recognizing the importance of this subject area. Access to medicine remains a vital challenge in the provision of quality health care throughout Canada. The issue of inequitable access to medicines and the need for a national solution have been key priorities of not only the Heart and Stroke Foundation, but also of the Health Charities Coalition of Canada, which is a collaborative group of 30 health organizations that the Heart and Stroke Foundation is proud to work with. Access to medicines impacts every health issue faced in Canada, with some common barriers across all conditions and unique challenges for individual diseases.
We are here today to discuss an issue that represents an ongoing gap in our universal health care system. As Canadians, we are extremely proud of our world-class system of care and its defining principles, which ensure all Canadians are able to access health care, regardless of their ability to pay or geography. We value these principles because they represent fairness and equity. Unfortunately, they don't extend to pharmaceuticals outside of the hospital.
Access to medicines remains an area of inequity, fragmentation, and systems failure, with 10% of Canadians being left behind. Without better drug coverage systems, Canadians truly do not have universal health coverage. Heart and Stroke believes there is much opportunity for improvement. We'd like to underscore that the first step for Canada is to continue to strengthen behaviour and lifestyle modifications at the population level, as a means of both preventing disease and managing heart and brain health. We thank the government, and specifically members of this committee, for their commitment and leadership around disease prevention through healthy living strategies. We need more in order to make it easier for Canadians to access healthy food, lead active lives, and remain smoke free, which will reduce their risk of chronic disease.
At the same time, the foundation recognizes that prescription drugs represent a very important component of treatment for a wide range of cardio and similar vascular conditions. When prescription drugs are used appropriately, they help to prevent disease, save lives, and improve quality of life. They can shorten time spent in hospitals and reduce demand for physician services, leading to decreased costs for the health care system in the long term.
While innovation in pharmaceuticals has led to medical breakthroughs and improved health status for many Canadians, our reliance on medicines has become greater, and many fear that the rising costs will be unsustainable for our system. Prescription drugs have risen from 6.3% in 1975 to 13.4% in 2014 of overall health care spending in Canada.
Our reliance on prescription drugs is clear, and it is not forecasted to diminish. Roughly half of Canadian adults take at least one prescription medication, while 15% take four or more. This means that in this room, at least five of you are taking one medication daily. Approximately 98% of Canadians with chronic diseases take at least one prescription drug, and 54% of Canadians with chronic conditions take four or more.
In 2014, Canadian pharmacies dispensed roughly 87,000 prescriptions for medications to treat cardiovascular disease. That's up 2.5% over the previous year, and it represents the highest dispensed category of medications in Canada. Prescription drugs, especially taken over an extended period of time, can be very expensive. Overall, while a majority of Canadians have some level of drug coverage, access to medicines is neither universal nor equal. In some cases, people go without recommended medications because they cannot afford them, and in other cases, purchasing the required medications puts them in serious financial difficulty. The next time you pick up a prescription medication from the pharmacy, take note of the initial cost and the cost after insurance benefits have been applied. You'll likely be very surprised by this difference.
Between 60% and 75% of Canadians are covered by private insurance plans, and between 9% and 43% qualify for government insurance, depending on their area of residence. Unfortunately, 3.4 million Canadians are either under-insured or not insured at all for out-of-hospital prescription drugs. In a survey of Canadians with comorbidities, with heart disease being one, 14% report having no insurance for necessary medications.
Access is a major issue, with more than one in five Canadians reporting difficulty paying for prescription medications without insurance coverage and one in 10 reporting difficulty even with insurance coverage. In 2010, 12% of Canadians reported paying more than $1,000 out of pocket for medical cost and 10% said that they did not fill their prescription or skipped doses as a result of the cost of their medication. Both of these figures depict Canada as much worse off than comparator countries.
Non-adherence to prescription drugs is extremely problematic and has been associated with significant increases in mortality, hospitalizations, and health care costs. These issues need to be addressed to ensure sustainability of our health care system.
Why are 10% of Canadians under-insured or not insured? Many do not have insurance because they are self-employed or working on contract or on part-time work. One-third of Canadians employed full time and three-quarters of part-time employees have no insurance for prescription medications. In addition, many drug plans provided by employers have maximum coverage thresholds and a limited range of therapeutic options, so even when they are covered by private insurance sometimes they find the options they need unavailable to them.
With the number of Canadians working part time increasing and many employers reducing drug coverage in insurance plans, fewer Canadians are covered for their necessary medications through their jobs. We need to do better for these underserved Canadians who are forced by circumstance to choose between putting food on the table and taking their medications.
The Canadian drug system does not provide equitable coverage between geographic regions. Drug availability differs among provinces because the country lacks a common formulary. Coverage of necessary and cost-effective essential medicines needs to be universal without geographic barriers.
Finally, we need to address the cost of medicines in Canada. While there has been some great cost-savings as a result of patent expirations and shifts toward generic use, research shows that generic drugs in Canada are more expensive than in foreign comparative markets, with only Switzerland outpricing Canada.
Recognizing the importance of drug access, the World Health Organization has declared that all countries are obliged to ensure equitable access to necessary medicines through universal health coverage. Canada is uniquely the only developed country with a universal health care system that does not cover prescription drugs. In 2012, the United Nations unanimously endorsed a resolution advising governments to ensure universal health access to quality health care without financial hardship, yet Canadians continue to experience such financial hardship around access to medicines.
It's time for Canada to fill a gap in our health care system and truly provide universal health care for all. The Heart and Stroke Foundation believes in the values of universality, equity, and equality in our health care system. All people living in Canada should have equitable and timely access to necessary prescription medications based on the best possible health outcomes rather than their ability to pay. The solution needs to be made in Canada, addressing our specific context and needs, while learning from the success of pharmacare programs elsewhere in the world. Building a national pharmacare plan will ultimately improve drug adherence, reduce the burden on the health system, and create a healthier, more productive population.
We call on the Government of Canada to take a leadership role in addressing the aforementioned issues, and we have a number of recommendations that can help move us forward. In particular, we recommend that, first, the Government of Canada create an advisory panel that would inform the development of comprehensive, evidence-based, and pan-Canadian pharmacare standards, which include universal and equitable access to essential medicines.
Second, we recommend that the federal, provincial, and territorial governments come together for collective negotiations to reduce the costs to the health care system and increase access to needed medications. Third, we recommend that the Government of Canada take a leadership role and share the cost of implementing pharmacare standards with the provinces, and fourth, that the health charities and the Canadians they represent be invited to participate in federal, provincial, and territorial consultations to support the development of pharmacare standards that meet the needs of all Canadians.
In conclusion, we are confident that in working together across sectors and levels of government, with the inclusion of the patient voice, we can create a drug system for Canada that is truly universal, equitable, and leaves no Canadian behind. The Heart and Stroke Foundation will continue to advocate for progress on this issue, and we are ready, willing, and able to work with the federal government and other health charities to ensure that Canadians of all backgrounds have access to affordable and necessary prescription drugs.
I thank you for your time today.