Mr. Speaker, it is my privilege today to begin the debate at third reading stage of Bill C-64, an act respecting pharmacare. The legislation, as people know, is a priority for the government. It would establish the fundamental principles for implementing a national pharmacare program in Canada. Additionally, it would outline our plan to work with participating provinces and territories to deliver universal single-payer coverage for various contraceptives and diabetes medications.
This is an important step toward a national universal pharmacare system, as well as a historic event in the evolution of health care in Canada.
The core principles outlined in the bill are accessibility, affordability, appropriateness and universality. Accessibility ensures that Canadians can access pharmaceuticals regardless of location or income, while affordability aims to minimize financial barriers.
Appropriate use prioritizes patient safety and health outcomes, while ensuring the sustainability of the health care system.
Last, the legislation would advocate for universal coverage across Canada. These principles would shape our collaborative efforts with provinces, territories and indigenous communities to establish national universal pharmacare.
Our government has repeatedly and consistently demonstrated our commitment to public health care. Budget 2023 announced $200 billion over 10 years to better support the health and well-being of Canadians with a strong and effective health care system. More recently, in budget 2024, we committed $1.5 billion over five years to launch the new national pharmacare plan. The plan would help provide support for Canadians seeking access to contraception and for those living with diabetes. Let me focus some of my time on contraception.
Canada has more than nine million women of child-bearing age, who account for nearly a quarter of our population. For many of them, access to safe and reliable contraception is essential.
It would grant them the autonomy to be intentional about their family planning and pursue their aspirations for the future. This may involve advancing their education or their careers, delaying starting a family until they feel prepared or choosing not to have children at all. Affordability has been recognized as the primary obstacle in accessing birth control. This can lead to individuals' not using it consistently and may discourage them from opting for the most reliable method available.
Consider oral contraceptives as an example. This type of birth control is priced at roughly $25 per month and carries a typical use failure rate of 9%. Compare this to IUDs, which cost up to $500 per year. Although IUDs are a higher initial investment, they provide coverage for five years and have a use failure rate as low as 0.2%. Women should be able to make the choice between different types of contraception, regardless of whether they can afford it.
Many Canadians are just simply not in a position to pay for these upfront investments. For example, a young, part-time worker who does not have drug coverage from their employer would struggle to pay for a $500 IUD. With limited income from sporadic employment, which is typical for many young adults, even the monthly prescription cost can present a significant financial burden. This is the reality for many Canadians, and it is a reality I have heard from some of my constituents in Ottawa Centre.
One study indicated that women and girls from lower-income families tend to use less-reliable contraceptive methods or opt out of using contraception altogether. This disparity emphasizes how socio-economic factors intersect with access to reproductive health care, identifying gaps in our health care system and perpetuating cycles of systemic inequality. Additional research has even shown us that providing contraception through public funding can actually result in public cost savings. The University of British Columbia estimates that implementing no-cost contraception has the possibility of saving the B.C. health care system around $27 million per year.
Recently, I had the opportunity to meet with Planned Parenthood Ottawa in my community of Ottawa Centre. Our conversation focused on a broad range of issues, but in particular we spoke of the impact Bill C-64 would have on the health of women here in our community. What became clear to me in that conversation was that contraception is not merely a matter of personal choice. It is an integral aspect of health care. It is a fundamental aspect of reproductive health, and it plays a pivotal role in advancing gender equality.
It was also made clear to me that, by ensuring affordable access to contraception, this legislation would advance gender equality. Preventing unintended pregnancies would enable more Canadians to participate in the economy, which would result in greater prosperity for all. This is crucial for building a more equitable society where everyone has the opportunity to thrive.
I want to thank Planned Parenthood Ottawa for the good work it does, day in and day out. I was really happy to speak to its representatives recently to let them know of a funding grant it is receiving to continue doing this important work in our community. I am thankful for them for meeting with me and for educating me further on the impact Bill C-64 would have on women here in our community and across the country.
Moving on to the impact on diabetes, we can apply the same cost-saving principle that I was speaking to in the case of contraception to medications that treat diabetes. Diabetes is one of the most prevalent chronic disease in Canada, impacting 3.7 million individuals at present. There are projections that this number will continue to grow.
Many of us know someone with diabetes and have seen the devastating effects it can have on a person's quality of life. While diabetes has no cure, treatments are available to control it.
These treatments are not always affordable or accessible to those who need them. We know that 25% of Canadians with diabetes have identified that the cost of their medications has impacted their ability to stick to their treatment plans. Neglecting proper management of this disease can result in devastating consequences.
When we made the announcement introducing Bill C-64, I was honoured to join the Minister of Health and many community advocates, who have been working in this area for some time, at the Centretown Community Health Centre, which is also located in my community of Ottawa Centre. Prior to the announcement, we met with some of the social workers, the primary health care practitioners and nurses who work at the Centretown Community Health Centre, which is a fabulous institution in my community. In fact, I used to serve on the board of the Centretown Community Health Centre some time ago.
When we met, we talked about the impact of this legislation. With regard to diabetes, we spoke to a specialist there who told us countless stories of individuals who she meets, and treats, who ration their diabetes medication. They are unable to afford the cost of their medication due to their current circumstances. It was made clear that, when diabetes is not properly managed, it can result in severe complications, such as heart attacks, strokes, blindness and even amputation.
In 2018, the total cost incurred by the health care system due to diabetes was estimated to be around $27 billion, a figure that we can expect to increase to $39 billion by 2028. These figures emphasize the urgent need for effective measures to mitigate the impact of diabetes and its associated costs on both individuals and the health care system as a whole. Independent of the legislation, the Government of Canada revealed its plan to collaborate with the provinces and territories to establish a diabetes devices fund. This initiative aims to guarantee that individuals with diabetes will have access to the essential medical devices and supplies they need to manage their treatment, including syringes, glucose-monitoring devices and insulin pumps.
This, along with the framework outlined in Bill C-64 for universal single-payer coverage for first line diabetes medications, would prevent any person living with diabetes in Canada from having to ration their medication or compromise their treatment. These actions will benefit all Canadians by helping diabetics control their disease, making it less costly to treat over time.
I want to address the concerns that pharmacare might affect private drug coverage, something that came up in the conversation when we were considering this bill at committee. Bill C-64 does not mention private drug insurance or regulate any of its activities. I want to be really clear about that. Our work with provinces and territories to offer universal single-payer coverage for contraception and diabetes medications would benefit all Canadians needing those drugs, regardless of their insurance status. Since the initiative is focused, benefits provided by private insurance are expected to remain unchanged. That choice remains in place.
As the two examples just mentioned show, the high cost of medication has become a pressing concern for too many people in Canada. For them, access to affordable medication is still a major challenge.
When medicare was first introduced in the 1960s, prescription medicines played a smaller role in the overall health care system. They were primarily administered in hospital settings, and those distributed beyond hospital confines were generally low in cost, but that is not the reality today.
Today, medicines are a vital and regular part of maintaining one's health. We know that roughly 1.1 million Canadians lack access to private or public drug insurance. That is approximately 2.8% of our population. In 2021, Statistics Canada found that one in five adults in Canada did not have the insurance they needed to cover the cost of the medication. In other words, 21% of adults in Canada face out-of-pocket drug costs that create a financial burden. This can lead people to forego their basic needs, such as food or heat, or even lead people to ration their medications or choose not to fill their prescriptions at all. Canadians should not have to choose between buying groceries and paying for medication. Being forced to make choices like these has serious consequences. Whether they are skipping meals or doses of medication, or opting to go without, sets off a chain reaction of adverse effects on the health of individuals and can heighten the strain on our health care and social support systems.
We can do better and we must do better. While it entails a financial commitment, the alternative, which is not investing in our pharmacare, would result in far more severe health and financial repercussions, as we can see with the two examples I presented earlier.
It is worth also noting that Canada has one of the highest per capita rates of prescription drug usage globally. Despite recent improvements, the elevated drug costs and the fragmented nature of drug coverage pose significant barriers for many individuals in Canada when it comes to accessing the prescription medications they need. In acknowledgement of these concerns, in December 2023, our government announced plans to advance the establishment of a Canadian drug agency, in short the CDA, with an investment of $89.5 million over five years, starting in 2024-25. The CDA will be built from the existing Canadian Agency for Drugs and Technologies in Health in partnership with provinces and territories. The Canadian Agency for Drugs and Technologies in Health publicly announced its transition to the CDA on May 1.
Canada's drug agency, or CDA, will play a central role in leading and coordinating initiatives designed to improve the sustainability and readiness of Canada's drug system for the future. Bill C‑64 sets out three main tasks for the CDA.
Initially, the agency would prepare a preliminary list of prescription drugs and related products to guide the establishment of a national formulary. This formulary would outline the range of prescription medications and associated products that Canadians should be able to access under the universal, national pharmacare.
Additionally, Bill C-64 would entrust the agency with formulating a national bulk purchasing strategy for prescription drugs and related products in co-operation with partners and stakeholders, including provinces and territories. This plan would explore methods to lower the cost of prescription drugs, which could help alleviate financial pressures for both individuals and the health care system. The agency would be required to finalize both the preliminary list and the strategy no later than the first anniversary of the day on which this act receives royal assent.
Last, the agency would aid in the publication of a pan-Canadian strategy concerning the appropriate utilization of prescription drugs and related products. This report would be released within one year of the bill receiving royal assent. Canada's drug agency would also be obligated to provide updates on the progress of implementing the strategy every three years.
As we know, national universal pharmacare cannot be accomplished without the contributions of the provinces, territories and indigenous peoples.
Given Canada's size and diversity, each province and territory has unique needs and specific challenges.
To establish a national pharmacare program that is both effective and fair, it is crucial to foster strong collaboration between the Government of Canada and all partners. Each stride toward national universal pharmacare will be made hand-in-hand with these partners. Future funding to support pharmacare will be allocated to provincial and territorial governments by way of bilateral agreements. This funding would supplement, rather than replace, existing provincial and territorial investments on public drug benefit programs.
In the immediate future, we will draw insights from ongoing initiatives as we persist in our efforts to enhance accessibility and affordability for all Canadians through a national pharmacare program.
Since August 2021, for example, our government has been working with the Government of Prince Edward Island to reduce drug costs for patients through the improving affordable access to prescription drugs initiative. Since then, P.E.I. has expanded access to over 100 additional medications on its roster of covered drugs, including treatments for cancer, heart disease, migraine and multiple sclerosis, just to name a few.
As of June 1, 2023, P.E.I. lowered copayment costs to $5 for nearly 60% of commonly prescribed medications for its residents. As a result of this initiative, within the first nine months alone, P.E.I. residents have saved over $2.8 million in out-of-pocket costs for over 330,000 prescriptions.
In addition to the progress being made on a regional level, I am happy to also share some of the work being done on a national level to support our pharmacare efforts. Bill C-64 builds on the work we have done to make drugs for rare diseases more accessible.
In March 2023, we launched Canada's first-ever national strategy for drugs for rare diseases. Supported by federal funding of up to $1.5 billion over three years, this strategy aims to enhance accessibility and affordability for medications for rare diseases, ensuring they are in reach for those who need them.
It marks the beginning of a national approach seeking to meet the need for drugs used in the treatment of rare diseases.
As my time is winding down, I want to say in conclusion that, in Canada, it is our belief that everyone should receive prompt access to the health care they need, when they need it, irrespective of financial needs. This principle is a core Canadian belief, and we are dedicated to defending it.
Bill C‑64 is a major step forward in our commitment to guaranteeing all Canadians access to affordable, high-quality drugs.
Our plan for universal coverage of contraception and diabetes medications would be life-changing for individuals, families, society and our health care system. While there is a lot of work ahead, we have already made substantial progress, from regulatory modernization to enhancing access to drugs for rare diseases, establishing Canada's drug agency and collaborating with the provinces and territories.
Passing this legislation would allow us to build on this momentum. We stand at the threshold of a new era in Canadian health care. We should seize this opportunity to invest in a stronger Canada.
I thank members for their attention.
I encourage all members of the House to vote in favour of Bill C-64.
