OTTAWA – As the federal Liberals consider a path forward for a national pharmacare plan, one advocacy group is calling on the government to rethink the program to make it work better for patients and save money.
Glenn Thibeault, the executive director of government affairs, advocacy and policy with Diabetes Canada, said the new government has an opportunity to shift pharmacare to something along the lines of its national dental care plan — which is only available to people who don’t have coverage elsewhere.
“I don’t think this is a fiscal priority for the government, with the way that the world has changed, but I still do think it’s very important for us to look at the costs that are associated with diabetes,” he said.
Prime Minister Mark Carney’s government has not been clear about what it plans for the future of pharmacare.
Finance Minister François-Philippe Champagne has written letters to his cabinet colleagues instructing them to find significant cost savings. The government is also planning to boost defence spending to meet Canada’s NATO target and is coping with the effects of U.S. President Donald Trump’s global trade war.
When asked about the status of pharmacare negotiations with provinces and territories at a recent press conference, Health Minister Marjorie Michel did not commit to continuing down the path set out by the previous government.
“It’s a new government, and we are in a new context, and we have to have discussions with the provinces to see how we can support them,” she told reporters in Fredericton.
The Trudeau government budgeted $1.5 billion over five years for the first phase of pharmacare, which covers the cost of some diabetes medications and contraceptives for patients. The plan was to sign agreements with all provinces and territories to fund the cost of medications.
Ottawa signed four-year deals with just three provinces and one territory before the April federal election.
The agreement with B.C. is worth more than $670 million. Manitoba’s is worth more than $219 million, P.E.I. signed on for more than $30 million and Yukon’s deal is worth up to $9.5 million. That adds up to $928.5 million — more than 60 per cent of what the government budgeted for pharmacare implementation.
“I think this is the opportunity for us to now work with provincial governments, work with the federal government to say, ‘OK, let’s look at what we do have in terms of funding and let’s make sure that we can get medicines, especially diabetes medicines, into the hands of people who need it,’” Thibeault said.
Diabetes Canada has criticized the pharmacare program rollout, saying it covers a limited scope of diabetes treatments and the formulary includes outdated products, meaning that many commonly prescribed medications are not covered.
The federal budget documents say the goal is to ensure people with diabetes are eligible for coverage of insulin worth up to $1,700 per year, depending on the type and dosage required, along with $100 per year for metformin, which is used to treat Type 2 diabetes.
Thibeault said the government could look to the dental care plan as an example of how to ensure more people get access to essential medications.
The pharmacare program is designed to provide “universal, single-payer, first-dollar coverage” for the included medications, according to the provincial and territorial agreements.
That means the federal government is providing funding to provinces and territories to cover the cost of the drugs, and patients can expect to get their medications at little or no cost. Some copays and dispensing fees do apply.
The pharmacare program covers everyone, regardless of whether they have private insurance.
The dental program, on the other hand, is only available to people who do not have coverage under a provincial or territorial plan and do not have private insurance.
“If you have private insurance that is working for you, why would we want to put that onto public coffers?” Thibeault said.
Reproductive health advocates have warned that failing to sign pharmacare agreements with the remaining nine provinces and territories would create inequity across the country.
The Canadian Labour Congress has said it would amount to the Liberal government “breaking a promise to Canadians.”
During the election campaign, the Liberals pledged to “protect dental care and pharmacare,” which it called critical services and part of a strong public health care system.
A spokesperson for Prime Minister Mark Carney said in response to questions last week that the Liberal leader promised during the campaign “that we wouldn’t cut or abolish any of the existing deals.”
This report by The Canadian Press was first published July 30, 2025.
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