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Newsletter Article


Nationwide Bulk-Buying Drug Program

Canadian premiers recently attended the annual Council of the Federation conference in Winnipeg to discuss a purchasing alliance between provinces and territories. In an effort to drive down rising health care costs, the group agreed to work together in establishing a national agency responsible for purchasing $10 billion in prescription drugs, medical supplies, and equipment—resulting in reduced drug spending. This marks the first time that provinces have come together to leverage their negotiating power with the federal government for health care dollars. The federal government currently contributes approximately 20 cents per dollar (US$0.19) on health expenditures in each province, which is set to increase 6 percent a year until March 2014. The premiers pledged to begin discussions with the government to ensure continued health care payments to provinces and territories.


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