FILE PHOTO: Canada’s Minister of Health Mark Holland in the House of Commons on Parliament Hill in Ottawa, Ontario, Canada September 18, 2023. REUTERS/Blair Gable/File Photo
By Steve Scherer and Ismail Shakil
OTTAWA (Reuters) -Canada’s Liberal government on Thursday introduced the broad outline of a national scheme to cover the cost of prescription drugs and said it will not mean much extra spending in the upcoming budget year, the health minister said.
The first drugs to be covered by the plan will be birth control, including the so-called day-after pill, and insulin for diabetics.
The opposition New Democratic Party (NDP) announced it had reached a political deal with the Liberals last week on the legislation.
The agreement sealed the NDP’s continued support of Prime Minister Justin Trudeau’s minority government. In late 2021, the NDP agreed to back Trudeau primarily in return for this legislation, known as pharmacare, and an expansion of dental care.
The continued NDP support means Trudeau likely will be able to govern until the next election, which by law must be held at some point in October 2025.
Now the federal government must sign up provinces and territories, which provide healthcare, and Health Minister Mark Holland said that would take some time.
“For budgetary purposes, (pharmacare) is not going to be booked in this year,” Holland told reporters. He said the costs would be reflected in the 2025-26 budget instead.
Holland did say that the price tag for birth control and insulin would likely be about C$1.5 billion ($1.11 billion) per year once it is implemented across the country.
The government is preparing this year’s budget, which is due to be released in March or April. Finance Minister Chrystia Freeland is under pressure to keep new spending at a minimum because the central bank has said more government expenditure could delay reducing interest rates from a 22-year high of 5%.
($1 = 1.3574 Canadian dollars)
(Reporting by Steve Scherer and Ismail ShakilEditing by Marguerita Choy)
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