March 20, 1996

Reductions of hundreds of millions of dollars in federal transfer payments have forced the province to make significant changes to the Pharmacare program, Family Services Minister Bonnie Mitchelson on behalf of Health Minister Jim McCrae said today. However, she said the Manitoba government has been "careful to ensure Manitobans with the greatest need will continue to receive coverage" for prescription drug costs.

In making the announcement, Mitchelson said the government expects to save approximately $20 million per year while still providing one of the most generous and comprehensive programs in the country.

"The substantial reduction in federal funding made it necessary to re-examine Pharmacare and determine the best use of our reduced dollars," the minister said. "Some Manitobans spend thousands of dollars each year on necessary prescription drugs and a high percentage of them have fixed or low incomes. Priorities had to be established to guarantee Pharmacare will continue to be available for Manitobans who need it most."

Income based Pharmacare will take effect April 1. Some of the changes include:

basing coverage on income, not age;

giving applicants 100 per cent coverage on all eligible prescription drug purchases once the new deductible level is reached;

registering for coverage on an annual basis;

basing the Pharmacare year from April 1 to March 31.

"Our new program will be sensitive to those who have low or fixed incomes," Mitchelson said. "The program provides for two different deductibles (two per cent or three per cent) based on whether a claimant's adjusted income is below or above $15,000. Income will be adjusted to reflect deductions of $3,000 for a spouse and each dependant child under 18. For example, this means families of four with a family income of under $24,000 will not pay more than two per cent of their adjusted income on drug costs. We believe this helps ensure the program will benefit those who need it most."

Those receiving benefits through the social assistance drug program or other fully covered health programs, will not be affected by the change to an income based program.

To ease the transition to income based Pharmacare, the cost of eligible prescriptions purchased between Jan. 1 and March 31, up to and including the current deductible level, will be credited toward the new deductible.

She said the new program is similar to a program instituted in Saskatchewan in 1993. However, she said, Saskatchewan has only one deductible (3.4 per cent) for all levels of adjusted family income, up to $50,000. Quebec and the Atlantic provinces only offer Pharmacare programs to those over 65. Ontario and Alberta have also moved to income based Pharmacare programs while B.C. has fixed deductibles and a co-payment.

Applications for income based Pharmacare can be made at any time. Purchases made throughout a benefit year will be applied, regardless of at what point during the year an application is made. Application forms are available at pharmacies across the province.

The new program will continue to operate through the province's Drug Program Information Network, the computer system which links all pharmacies in the province. The computer system will have information on a person's drug purchases and their deductible so they will not have to pay for their purchases after the deductible has been reached.

Those people currently enrolled in the Life Saving Drugs Program will continue to receive the same benefits. All new applicants will be enrolled in the new income based Pharmacare program which maintains the principles of protecting those with low income and high drug costs.

"Other provincial drug programs across Canada have also been changed to reflect the reality of limited funding," said Mitchelson. "With income based Pharmacare, Manitoba still provides the best overall coverage for people whose income is seriously affected by high prescription drug costs."

Manitoba Health has personnel available to answer questions from the public about the new program. People may call 786-7141 or toll-free 1-800-297-8099.

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