Mr. Speaker, close to eight million Canadians do not have drug coverage, because Canada is one of the few industrialized nations that offers universal health care without offering medicare.
Without medication, there can be no treatment. Health care without drugs is inconceivable. Of course, the NDP supports the motion even though it may seem redundant. In fact, a report of the Standing Committee on Health released on September 25, 2017, showed that a universal pharmacare program is the best tool for reducing the cost of medications in Canada and therefore increasing their accessibility.
Other studies and reports, such as that of the parliamentary budget officer, came to the same conclusion as the Standing Committee on Health. The parliamentary budget officer's report on the federal cost of a national pharmacare program, which was released on September 28, reveals that a national pharmacare program would actually save Canadians $4.2 billion a year.
Professor Marc-André Gagnon, an expert in public policy at Carleton University here in Ottawa, estimates that the government could cut its spending by half. There would be savings of more than $1 billion from the elimination of administrative costs associated with private insurers. Do members know that 100 or so generic drugs in Canada cost 54% more than in the United Kingdom, France, or the United States? Why is it so expensive to get care in Canada? I will tell you why.
The cost of newly approved medications is set by a federal body, the Patented Medicine Prices Review Board. This board examines the price of medications in other countries and uses the median price to set the Canadian price. However, the countries used for comparison purposes are those with the highest prices in the world, so we end up with unnecessarily high prices. According to a report issued by the Patented Medicine Prices Review Board, total drug expenditures in Canada grew by 185% in 2015. Although Canadians are spending more money on treatment than people in other countries, only a very low percentage of that money goes to fund health research.
The percentage of revenue from the sale of drugs that goes to research is three times higher in other countries than in Canada. This money is therefore not even being put back into research and finding ways to improve health. Nevertheless, the pharmaceutical industry leaders promised to increase spending on research and development in exchange for the patent reform of the 1980s. They pressured the government for new rights to patents and a longer period of protection, and they got it. However, in return, those same industry leaders did not to keep their promises. This tells us one important thing. The artificially inflated prescription drug prices have not led to increased investments in research and development.
The government needs to increase funding for health research in Canada and act on the recommendations of the Naylor report. An expert committee, led by David Naylor, published a report on April 10, 2017, recommending that the federal government invest $1.3 billion in research and reform how research activities are overseen. In countries that have a universal pharmacare program, the price of both patented and generic drugs is negotiated with the pharmaceutical companies. Buying drugs in such large quantities gives these countries a lot of bargaining power. Depending on the plan, they negotiate the bulk price, establish budgets, hold competitive bidding processes for companies, consider bundling several drugs, and so on.
Most drug expenditures in Canada come from thousands of private plans wherein people have absolutely no power to negotiate lower prices for drugs. Workers and employers are the ones who pay for the drugs, not the insurance companies. A universal pharmacare program would give the federal, provincial, and territorial governments more power to negotiate with the pharmaceutical companies, which means that it would also cut costs. Drug reimbursements would increase and the process would be simplified.
Private plans cover millions of people in different ways. This has consequences because, in 2015, more than one in five Canadian households were not taking their prescribed drugs because they cost too much. All doctors are aware of the health problems that arise when patients do not take their medications because they are too expensive. For example, a one-year supply of a cholesterol-lowering drug costs less than $15 in New Zealand and more than $140 in Canada. That is not acceptable.
With a public, universal pharmacare program, prescription drug prices would drop. With a public, universal pharmacare program, the process would be simplified because there would no longer be so many private players proposing countless plans and sometimes preventing the consumer from making an informed choice. A universal pharmacare program would create a list of insured drugs based on patient health. A single list based on sound evidence would help ensure that drugs are used properly, while taking into account their therapeutic value for patients.
It is estimated that 80% of new drugs offer no added therapeutic benefit compared to less expensive drugs already on the market. This statistic is backed by a brief that was submitted to the Standing Committee on Health. Universal pharmacare would have many benefits for the provinces and territories. Take Quebec for example. If we had an entirely publicly funded universal pharmacare program, the Quebec government alone would save an estimated $1 billion a year. Currently, Quebec residents are required to join their employer's private plan or their spouse's employer's plan. The problem is that, for some types of employees, the cost of these private pharmacare programs represents a significant proportion of their salary.
On top of the potential savings to Quebec, a universal pharmacare program would relieve employers of a huge cost, enabling them to be more competitive and offer higher salaries and added benefits. A new agreement that came into effect on October 1, 2017, between the Government of Quebec and generic drug companies will result in $1.5 billion in savings over five years. That is the first step to reducing the price of drugs in Quebec. However, implementing a universal pharmacare program would allow Quebec and the other provinces and territories to save even more and offer additional benefits.
Access to essential drugs is a human right recognized by the World Health Organization. That is why we absolutely must find a way to lower the cost of prescription drugs so that all Canadians can get the treatment they need without going bankrupt. A universal system would be fairer for Canadians. It would provide free drugs to the least fortunate. In Ontario, barely 40% of employer-sponsored insurance plans provide 100% coverage for drugs. A universal pharmacare program would eliminate discrimination related to access to medication. In some provinces and territories, only people on social assistance, seniors, and people with certain illnesses are covered by the public system. In other provinces and territories, coverage is based on income.
According to the Canadian Labour Congress, coverage under Quebec's private prescription drug plans depends on a certain number of factors that have nothing to do with medical needs, such as a person's age, income, employment status, place of work, and even where they get their medication. A national pharmacare program would reduce inequality in terms of access to drugs. Comprehensive, evidence-based, national pharmacare standards would ensure that all Canadians have equal access to prescription drug coverage.
In closing, an Angus Reid poll showed that over 90% of Canadians support the creation of a universal pharmacare program. Canadians want it, and the government would save billions of dollars, so what is the government waiting for?