Budget Bulletin: Protecting Pharmacare for Seniors

Nova Scotia seniors deserve assurances that the Pharmacare program will continue to be there to assist them with the high cost of drugs. This requires changes to the Pharmacare program now that will bring costs of the program under control and protect the program for seniors now and into the future.

In the last several years, Pharmacare costs have grown significantly. This year alone, it is projected to grow by 12 per cent, to a total cost of $116 million.

The cost-share ratio has also changed significantly. In 1995, the goal of Pharmacare was to cost-share the program 50-50, between government and seniors. As a result of escalating program costs, the cost-share is now 79 per cent by government, 21 per cent by seniors.

To protect the program for the long term:

• The premium seniors pay remains unchanged this year.

• The co-pay changes from 20 per cent to 33 per cent per prescription, to a maximum of $350 per year (an average increase of about $5 per prescription). This change is effective immediately.

• Starting next year, increases in the premium and co-payments will be linked to a drug inflation index. The drug inflation index will be established in consultation with the Senior Citizens' Secretariat and other seniors' groups.

The Nova Scotia Pharmacare program remains one of the most generous in the country. After these changes, government will continue to fund more than 70 per cent of the total Pharmacare costs.

NOTE: For other 2000-01 budget information, visit the Department of Finance website at www.gov.ns.ca/finance .