News release

Province Keeps Seniors' Pharmacare Affordable

Health (to Jan. 2011)

Despite a significant increase in the costs of the Seniors Pharmacare Program, maximum premiums and co-payments will remain the same for seniors in 2010-11.

"I've spoken with many seniors, and the cost of prescription drugs is often a concern," said Health Minister Maureen MacDonald. "Government is committed to keeping program costs as low as possible, which is why we are holding the line on seniors' premiums and co-payments this year."

Seniors Pharmacare Program costs have grown substantially, to an estimated $195 million for 2010-11, an increase of almost five per cent. The number of seniors enrolled is growing -- about two per cent for the coming year -- more prescriptions are being filled, and drug costs continue to rise.

Revenues to the program have also been increasing. Most significantly, more seniors at higher income levels are joining the program. Higher-income seniors pay the maximum premium, which means more money comes into the program from seniors collectively, even when co-pay and premium maximums remain the same for individual seniors.

Government has changed the Seniors Pharmacare Program regulations to provide more flexibility as costs and revenues change. The regulation had capped the seniors' portion at 25 per cent, plus or minus one per cent. It has been changed to 25 per cent, plus or minus three per cent.

In 2009-10, taxpayers covered about 74 per cent of the program costs, and seniors covered about 26 per cent. In 2010-11, that cost-share changes to 73 per cent for taxpayers, and about 27 per cent for seniors.

The minister said the goal is to strike a reasonable balance between the escalating program costs and the $525-million deficit taxpayers and government must grapple with.

Changes to the program are discussed with the Group of IX Nova Scotia Seniors' Organizations through the Department of Seniors. The primary role of the group is to ensure the needs of seniors are represented in government decision-making.

About 101,000 people are registered in the Seniors' Pharmacare Program and about 50 per cent, including those receiving the guaranteed income supplement, are exempt from paying the premiums or pay a reduced amount.

Costs to individual seniors in the program are based on income and drugs purchased. For the third year in a row, the maximum annual co-payment will remain at $382 and the maximum annual premium will stay at $424.

Seniors will get full details when they receive their renewal packages in February.