Proposed national drug formulary and common purchasing will provide little help for seniors
Ottawa, September 24, 2001 – “A national drug formulary and common purchasing for federal and provincial governments is long overdue, but it does not go far enough,” says Rex Guy, National President of the Federal Superannuates National Association.
This proposal would allow governments to negotiate lower prices, refuse high-cost drugs with cheaper alternatives, and better implement effective prescription strategies. However, a national program whereby both the public and private sectors could participate would be much more effective because the private sector spends twice as much on drugs as do governments.
Public and private participation would benefit all Canadian families by lowering their drug costs and promoting intelligent prescribing practice.
Provincial and federal health ministers meeting in St. John’s today could adopt a national drug formulary and common purchasing proposal. This proposal will only affect purchases in hospitals and other government programs.
Some data on drug costs – 1998 ($ billion)
Prescription($) Drugs (%) All ($) Drugs (%)
Governments 3.9 41.5 3.9 31.5
Private Sector 5.5 58.5 8.5 68.5
Total 9.4 100 12.4 100
Source: Drug Expenditure in Canada – 1985 – 2000; Canadian Institute for Health Information, p. 7.
With a membership of 120,000, FSNA is a not-for-profit organization that represents the interests of retirees from the Public Service of Canada, the Canadian Forces, the Royal Canadian Mounted Police, and Judges, as well as their spouses.
