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Want a New Drug plan

Author: Victor Vrsnik 2002/09/19
A sure sign that BC's health care system is about to capsize is when seniors are pitted against low-income earners to compete for Pharmacare benefits.

The provincial Liberals recently announced that lower deduction costs for drugs will soon be subject to income-testing. Meaning, the less you earn, the less you pay for prescription drugs, regardless of age.

The change to Pharmacare exemptions will strike a more fair balance says Health Minister Collin Hansen because many seniors are financially better off than people under 65 who are forced to pay the higher deductible. The government hopes to save $90 million per year on top of a $720 million drug budget. Can you blame them

It's inconceivable for the government to pay, as they do, 53% of rising drug costs in BC.

The explosion of drug therapy has caused double digit spending spikes. Pharmaceuticals climbed from 9% of the total health care budget in 1977 to 15% today. Patents keep drugs pricey and the demand from BC's graying population keeps them well stocked.

The take-no-prisoner-opponents of the Campbell government say that were it not for tax cuts, both seniors and low-income earners could enjoy the benefits of Pharmacare exemptions. Rubbish.

BC is anything but remiss in health funding. The only provinces to spend more per capita on health care are PEI and Newfoundland.

About 40% of the entire provincial budget is dedicated to healthcare spending. And last year health care got another $1 billion shot in the arm.

Meanwhile, the net tax cut in the February budget amounted to $1.4 billion after health care premiums shot up $800 million or 50%. Strip away what's left of the tax cut and Liberals would still be $2.6 billion in the red.

Deficit spending is a disgraceful substitute for healthcare spending.

Instead of questioning whether BC can afford tax relief, opponents should ask whether the province can afford not to grow the tax base to cover rising health costs and expectations.

Shrinking populations, rotting economies and diminished tax revenues have a funny way of bringing a health care system to its knees.

By shifting the costs of Pharmacare from one group to another, the Campbell government has managed to briefly contain the uncontainable. It's a classic case of rearranging the deck chairs on the Titanic.

BC Health is on a collision course, not with tax cuts, but with every other Ministry. At the current spending rate, health care could consume an estimated 50% of the provincial budget by 2007 and 100% by 2022.

Instead of quibbling over tax cuts, Medicare fanatics will have to take on the education system or other social services for scare government dollars. Not unlike Federal Finance Minister John Manely, most politicians would sooner leap off the Peace Tower that have to choose between paying for syringes or pencils.

The bleak scenario is avoidable if Ottawa and the Provinces lock arms to bring the Canada Health Act into the 21st Century. Opening up health care to innovation and private service providers, as other European countries have done, can save money and better retain universal coverage.

One such innovation is a national pharmaceutical purchasing plan that would have all provinces shop in bulk to keep drug costs down. Where possible, modeling the health care system on Pharmacare's co-payment plan - with appropriate low-income exemptions - presents another alternative to the change-resistant health care monopoly.

And if you're a healthy strapping young lad or lass, don't pop Pharmacare-covered anti-biotics like candy to fight off a cold. They drive up the costs for those who need them most.

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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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