EU Trade Deal Could Cost Canadian Drug Plans Billions

By André Picard

Provisions in a new trade deal being negotiated between Canada and the European Union could add about $2.8-billion a year in costs to Canadian drug plans if implemented, a new report warns.

The estimate includes $1.3-billion more for public drug plans and $1.5-billion for private drug plans.

"This will create a huge hole in provincial budgets in particular,” Aidan Hollis, a professor of economics at the University of Calgary and co-author of the report, said in an interview.

Ontario alone could see drug costs jump $500-million, Quebec $412-million and B.C. $101-million annually, according to the new analysis.

Drugs, both prescription and over the counter, accounted for $31-billion of the $192-billion in health spending in 2010. Drugs have been the fastest-growing component of health-care spending for a number of years and the provinces have responded with a number of measures including tightening up drug formularies and sharply reducing the price they would pay for generic drugs.

Generics account for 54 per cent of prescription drugs and brand-name drugs 46 per cent.

full article http://www.theglobeandmail.com/life/health/eu-trade-deal-could-cost-canadian-drug-plans-billions/article1896747/