Carney government warns of spending cuts while $2.5 billion in pharmacare deals remain unsigned
Four out of five Canadians remain excluded from the national pharmacare program.
Most provinces and territories have not signed agreements, missing out on billions in available federal health funding, according to a recent study by the Canadian Centre for Policy Alternatives (CCPA).
The study, published last week, estimated that Ontario alone could receive $2.5bn over four years, and Nova Scotia $171m, if they entered into bilateral pharmacare agreements.
With only four jurisdictions currently signed on—Manitoba, British Columbia, Prince Edward Island, and Yukon—the CCPA said the remaining provinces are foregoing hundreds of millions in support for public health care systems.
The federal program, enshrined in law through the Pharmacare Act (C-64) which received Royal Assent on October 10, 2024, commits Ottawa to fund diabetes medications and contraceptives.
According to the Canadian Health Coalition, the existing four deals will deliver $928m over four years beginning in 2026, covering nearly 7.5 million people.
Despite these agreements, Federal Health Minister Marjorie Michel has not confirmed whether new pharmacare deals will be signed.
During a press conference in New Brunswick this week, Michel said the government is operating in “a new context,” according to the Canadian Press.
Emilie Gauduchon-Campbell, a spokesperson for the minister, said in an email that “our new government will be there to discuss with our provincial and territorial partners how we can support them for better health outcomes for Canadians.”
As reported by the Telegraph-Journal, New Brunswick Premier Susan Holt said her government has not heard from Ottawa since the election.
However, the Canadian Health Coalition stated that Holt confirmed negotiations are underway for her province to join the program.
If successful, the CCPA estimated New Brunswick could receive $136m over four years.
Manitoba became the first jurisdiction to sign a deal on February 27.
Premier Wab Kinew called the $219m agreement “a good deal,” saying it would support reproductive freedom for nearly 350,000 people and provide essential medications to more than 149,000 residents with diabetes.
British Columbia Premier David Eby echoed this sentiment after his province signed a $670m deal on March 6.
The agreement is expected to support reproductive freedom for 1.3 million people and ensure access to diabetes medications for 550,000 residents.
However, plans for national expansion have slowed.
Former health minister Mark Holland warned earlier this year that there would not be enough time to negotiate additional deals before the election.
“There’s no room for politics in this. It’s just logic. It’s the thing we must do for this country,” said Holland in February.
The New Democratic Party, which championed pharmacare through its 2024 supply-and-confidence agreement with the Liberals, has called on Prime Minister Mark Carney to recommit to the program.
“We call on him to finalize Pharmacare agreements with all remaining provinces and territories and allocate the funding Liberals promised so that no Canadian has to choose between life-saving medicine and putting food on the table,” said interim leader Don Davies.
Steven Staples, national director of policy and advocacy at the Canadian Health Coalition, said, “I don’t think anybody voted for cuts to health care, including pharmacare.”
Although health care was raised at the Council of the Federation meetings this week in Ontario, it received only brief mention in the final communiqué.
Premiers said they were exploring ways to improve access to medications but did not mention pharmacare specifically.
At the closing press conference, P.E.I. Premier Rob Lantz described the Council as “a venue to lobby for more health transfers.”
Kinew said Canada’s universal health care remains “a point of national pride.”
He added that if Canadians want to claim they are standing up to US President Donald Trump and refuse to become “the 51st state,” then the country must ensure its universal health system is strong and supports people in every region.
Carney’s government has said spending cuts are coming as Ottawa pivots its fiscal focus to the economy and national defence.
According to the Canadian Press, premiers said Carney did not raise health care when he attended the Council’s meetings on Tuesday to discuss trade tensions with the US.
