A Step Forward: The Health and Economic Benefits of the Implementation of OHIP +

Out of all the developed countries that offer universal health care, Canada is the only country that does not offer universal drug coverage. In April of 2017, Ontario’s Finance Minister Charles Sousa released the 2017 Ontario Budget: A Stronger, Healthier Ontario. This budget outlined the province’s drug benefit program, OHIP+, which will provide any Ontarian 24 years old or younger full coverage on prescription medications starting in January 2018. Ontario currently covers drug expenses for those on social assistance, those with disabilities, and residents who are older than 65 years old. OHIP+ would double the amount of people covered by the province. It would be a good investment towards improving the quality of life for Ontarians.

OHIP+ will improve the health of young Ontarians by decreasing access barriers to prescription drugs. Many Canadians have private coverage, but approximately 20% of Canadians are still uninsured or underinsured. Eliminating these costs can improve health outcomes for Canadians by improving adherence to prescriptions. Although some may see the target population as generally healthy, the implementation of OHIP+ will help young people and their families with costs and access to pharmaceuticals for many chronic conditions such as mental illness and cancer.

Mental illness is a major health problem globally, and in Canada. It is the second leading cause of death in youth. Approximately 29.1% of Canadian youth ages 13-19 years of age have mental health problems. OHIP+ can increase accessibility to important pharmaceutical therapies for mental illness, for those with and without private health insurance.

Another example of how OHIP+ can improve the lives of Ontarians is how it may save families money. Trillium’s catastrophic drug plan covers families and individuals who spend more than 4% of their gross income on pharmaceuticals. With OHIP+, families that depend on the Trillium drug plan can save thousands of dollars on the deductibles they would have paid.

Implementing a provincial program such as OHIP+ may save the government money. Pharmaceuticals in Ontario are currently covered through patchworks of uncoordinated plans and payers. The cost of essential and generic pharmaceuticals in Canada is 60% higher than in Sweden and 84% higher than in New Zealand, two countries that have universal drug coverage. The government can save money by shifting the population’s reliance from private health insurance to a more comprehensive provincial plan. A more comprehensive provincial plan would allow the province to buy more pharmaceuticals in bulk, thus giving the province more negotiation leverage with pharmaceutical manufacturers.

Overall, OHIP+ will provide Ontarians with both health and economic benefits. OHIP+ will improve health outcomes for many young Ontarians by eliminating costs and providing better access for their needed pharmaceuticals. OHIP+ will also help the Ontario’s economy by reducing the cost of private health insurance for Canadian companies, and by potentially saving the government money. Though full national and universal drug coverage is ideal, OHIP+ is a push towards the betterment of health care system.

References:

Morgan SG, Law M, Daw JR, Abraham L, Martin D. Estimated cost of universal public coverage of prescription drugs in Canada. Canadian Medical Association Journal. 2015;187(7):491-497. Available from doi: 10.1503/cmaj.161082
Ferguson, R. Free prescription medicines for those 24 and under first step to national pharmacare plan: Sousa. Toronto Star. Newspaper Article. Available from: https://www.thestar.com/news/canada/2017/04/27/free-prescription-medicines-for-those-24 -and-under-first-step-to-national-pharmacare-plan-sousa.html
Vogel L. Election 2015: new arguments for pharmacare. Canadian Medical Association Journal. 2015;187(17): E483-E484 . Available from doi: 10.1503/cmaj.109-5178