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Think tank calls on Ottawa to abandon single-payer pharmacare model
The C.D. Howe Institute recommends focusing on fiscally sustainable universal coverage using the current mixed public-private system amid cost uncertainties.
The C.D. Howe Institute released a report on September 18, 2025, urging Ottawa to reconsider the single-payer pharmacare model in Canada.
This call follows ongoing political pressure and uncertainty, including a confidence-and-supply agreement requiring pharmacare legislation and unclear federal plans by Prime Minister Mark Carney.
The report emphasizes Quebec’s longstanding public drug insurance as a model while noting current federal deals cover only 18% of Canadians despite $1.5 billion allocated in the last budget.
Author Rosalie Wyonch stated that the federal government should focus on providing health coverage to all Canadians in a way that is financially responsible and takes advantage of the existing blend of public and private healthcare services.
The report suggests that universal pharmacare would be costly, with drug costs estimated at $38.9 billion in 2027-28, and calls for clearer federal policy amid economic and tariff-related uncertainties.