Canada Enacts First Phase of Universal Pharmacare

The Government of Canada has enacted the Pharmacare Act, marking the initial phase of a national universal pharmacare program. This legislation, which received Royal Assent on October 10, 2024, aims to provide universal access to certain medications, including contraception and diabetes treatments. The Minister of Health will engage with provincial and territorial governments to establish agreements that ensure a single-payer system for these medications.

The Act mandates the creation of a list of essential drugs and related products, which will guide the development of a national formulary. Additionally, a national bulk purchasing strategy is to be implemented to reduce drug prices. A committee of experts will be formed within 30 days to offer recommendations on the operation and financing of the pharmacare program.

The government claims that this initiative will enhance health equity and affordability, potentially leading to long-term savings in the healthcare system. The program is expected to benefit up to nine million women and gender-diverse individuals by providing free access to contraception, and it aims to support the 3.7 million Canadians living with diabetes by offering access to medications that mitigate health risks.