As Canada navigates political transitions and healthcare reforms, the fate of national initiatives hangs in the balance while new investments signal potential solutions. From pharmacare implementation to drug costs and access challenges, this week's developments reveal both the vulnerabilities and opportunities in Canadian healthcare.
The Council of Canadians has raised concerns about the uncertain future of the national pharmacare program amid the upcoming federal election triggered by Prime Minister Justin Trudeau's resignation. The council has called for public pressure on provincial leaders to secure the program’s implementation. Federal Health Minister Mark Holland told the Toronto Star that the government is working to finalize deals with provinces and territories to establish universal medication coverage before the election, as a potential Conservative government under Pierre Poilievre could end the initiative. Some provinces are nearing agreements, though others remain hesitant, partly due to lobbying by pharmaceutical and insurance companies. Advocates, including Dr. Eric Hoskins, urge swift action, warning the opportunity may vanish after the election.
Rising drug costs remain a significant challenge for group insurance plans in Canada, with chronic diseases and high-cost specialty treatments driving most of the increases, according to an Insurance Portal analysis. In a report, the Patented Medicine Prices Review Board highlighted a sharp rise in new drugs in the pipeline, especially in oncology, while claims for anti-obesity drugs like Wegovy and treatments for chronic conditions continue to surge. Insurers, including Beneva and GreenShield, pushed for price reductions but reported that costs for high-cost drugs, such as cystic fibrosis treatments, have risen sharply, placing a heavy burden on benefit plans.
While drug costs present one barrier to healthcare access, a broader crisis in primary care delivery is emerging. A poll conducted by the Canadian Medical Association (CMA) and Abacus data reported that 37% of Canadians had to seek medical advice online due to a lack of access to a doctor, and 23% experienced negative health outcomes from following such advice. Nearly 6.5 million Canadians do not have a regular family doctor or nurse practitioner, resulting in increased reliance on online information. About 43% of the respondents had encountered false health information, contributing to mental distress or increased anxiety. The CMA calls for reforms, including improved access to team-based care, reduced physician administrative burdens, and enhanced accurate health information dissemination.
Amid these healthcare challenges, a major investment signals potential progress in digital health innovation. The provincial government of Ontario secured an $820 million investment from AstraZeneca Canada Inc. to support the expansion of research and development capabilities in Mississauga. The expansion, aligned with Ontario's life sciences strategy "Taking Life Sciences to the Next Level," will focus on advancing R&D, strengthening biomanufacturing capacity, and fostering innovation using artificial intelligence (AI) and digital health technologies. Invest Ontario provided a $16.1 million grant to support AstraZeneca's initiative of leveraging AI in oncology, immunology, and infectious disease trials. The company aims to introduce new medicines, including breakthroughs in cancer and rare diseases, with plans to enhance its global clinical studies pipeline and achieve $80 billion USD in total revenue by 2030.
These domestic healthcare developments unfold against a backdrop of international economic uncertainty, as U.S. President Donald Trump announced that he will still implement a 25% tariff on Canadian imports as early as February 1, 2025. As Canadian ministers reiterated plans to impose retaliatory tariffs worth up to $147 billion, Prime Minister Justin Trudeau said the delay could offer Canada more time for negotiation and expressed hopes for continued cooperation. Trudeau emphasized the strong economic partnership between Canada and the U.S. as he congratulated Trump on his second-term inauguration.
As expected, responses varied, with Ontario Premier Doug Ford instructing the Liquor Control Board of Ontario to remove U.S. alcohol from shelves if tariffs are imposed, expressing concern that tariffs could specifically target Ontario's manufacturing sector, while Alberta Premier Danielle Smith called for diplomacy over retaliation, even as she warned that the threat of tariffs is real.
Trade Minister Mary Ng emphasized that Canada is prepared for potential tariffs, while Innovation Minister François-Philippe Champagne said Canada must maintain its engagement with the Trump administration. Liberal MP John McKay said the threat of tariffs will remain uncertain in the next four years.
Prior to Trump's inauguration, a Bank of Canada survey found that nearly 40% of Canadian businesses expect a negative impact from the incoming U.S. administration, with 18% predicting rising prices due to potential tariffs.
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