WARSAW, Poland – Finance Minister Chrystia Freeland says pharmacare does not threaten Canada's fiscal position as the federal government intends to abide by the spending rules it committed to this fall.
The NDP confirmed Friday that it has reached an agreement with the Liberals on pharmaceutical care, which will give all Canadians with a health card access to free diabetes medication and contraception.
The coverage would be included in the first part of a national pharmacare program, a key pillar of the bipartisan Supply and Confidence Agreement, with legislation expected to be introduced in the House of Representatives this week.
Freeland told reporters today at a military base in Poland that the government is committed to investing in Canadians while remaining fiscally responsible, and that means adhering to the spending rules set out in the Fall Economic Statement. Then he said.
The federal government has set a goal of keeping the budget deficit below 1% of GDP from 2026-2027, and keeping the deficit for the current fiscal year below the $40.1 billion projected in the spring budget.
It also aims to lower the debt-to-GDP ratio in 2024-25 than expected in the autumn economic report.
With negotiations appearing to stall earlier this year, Health Minister Mark Holland has repeatedly increased the cost of future pharmacare programs.
The only unresolved issue at the negotiating table was what types of diabetes supplies would be covered, according to people close to the negotiations.
The Liberals have revealed they are spending about $800 million on initial plans, said the people, who requested anonymity because they were not authorized to discuss the details of the private discussions publicly.
This report by The Canadian Press was first published Feb. 25, 2024.
Laura Osman, Canadian Press
