Under the headline "Province Makes Prescription Payments Easier" a government news release announced what amounts to a failure of the Campbell government's changed Pharmacare program. Eligible families will now be able to pay their annual family maximum through 12 monthly payments.

In 2003 so called "Fair Pharmacare" increased the amount many have to pay for their prescription drugs. The government is quick to point out that they also lowered the amount that almost 280,000 low-income families pay. They deserve credit for that, but that good deed doesn't change the fact that the increase for others has deterred them from filling necessary prescriptions.

When Pharmacare was first introduced in the 1970s by Dave Barrett's government, those over age 65 had full coverage for their eligible prescriptions with no deductibles or co-payments. By 2003 the program had been modified so that seniors paid up to $25 of the cost of each prescription to a maximum total payment of $275 per year. With the introduction of Fair Pharmacare on May 1, 2003, everyone, regardless of age, pays the full amount for their prescriptions until their deductible is met. Deductibles depend on family income, so they are different for each family. Once the deductible is satisfied the plan pays 70% (75% for those born before 1939) until an annual family maximum total payment is reached. For seniors with family incomes above $33,000 but less than $50,000, the maximum is 2% of income; for those with family incomes above $50,000, the maximum is 3% of income. So for a retired couple with $40,000 income, the maximum is $800; after that amount has been paid, the plan pays 100% of the cost. The problem for an elderly couple with $40,000 income is that their costs increased from $275 under the old plan to $800 under the new plan. Some who are unlucky enough to need expensive medications have to pay out their full annual maximum within a few weeks, and a sudden $800 hit is hard. The response from the Campbell government is to allow monthly payments.

In the spirit of openness and transparency it would be nice to know what problems led to the monthly payment plan. A joint UBC-Harvard study is underway to measure some of the consequences of increasing the deductibles and annual maximums for many seniors. When similar changes were made in Quebec, research showed the use of essential drugs decreased by 9.12% in elderly persons and the rate of serious adverse events associated with reductions in their use more than doubled. It is likely that the same thing has happened in BC.