Coverage of new medicines in private versus public drug plans in Canada 2009-2018

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CHPI ANNUAL REPORT

Since 2013, CHPI has regularly compared the quality of the benefits in private versus public drug plans, according to the scope of coverage for new medicines. Our analysis raises awareness about differences in the insurance benefits provided to patients and informs policy discussions about how best to achieve socio-economically optimal drug insurance systems in Canada. Our analysis shows that public plans cover far fewer new drugs compared to private plans in Canada. Public plans also take much longer to cover new drugs compared to private plans. These findings are important because the federal government has proposed replacing Canada's private-public prescription drug insurance system with a single-payer national pharmacare program that would be modeled on existing public formularies. The limited scope of coverage in existing public drug plans is indicative of what Canadians can expect from national pharmacare. The results of this study forewarn that national pharmacare will reduce access to new medicines for Canadians currently covered under private plans.

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