Standing Committee on Public Accounts

Comité permanent des comptes publics

For immediate release

Ottawa, October 17, 2016 -

Veterans Affairs Canada (VAC) needs to develop an evidence-based decision-making framework to help it manage its drug benefits program, proper cost-effectiveness strategies to manage drug costs, and a well-defined approach to monitor the utilization of drugs covered, according to a report of the Standing Committee on Public Accounts (the Committee) tabled today in the House of Commons by the Hon. Kevin Sorenson, Chair of the Committee.

According to the Office of the Auditor General of Canada (OAG), VAC’s Health Care Benefits Program provides drug benefits for eligible veterans, some of whom are considered vulnerable and have complex health needs such as mental health conditions. The Department’s Formulary Review Committee is responsible for reviewing, maintaining, and revising its drug benefits program, as well as making recommendations and providing guidance to its senior management to help maintain and improve the services provided to veterans.

According to Report 4—Drug Benefits—Veterans Affairs Canada, the OAG concluded that VAC did not adequately manage the drug component of its Health Care Benefits Program. The OAG also concluded that VAC used some cost-effectiveness strategies to manage drug costs, but it did not use all the information at its disposal to decide and document which drugs it would cover. Finally, the OAG concluded that the Department monitored the utilization of some high-risk drugs, but it has not developed a well-defined monitoring approach that could help detect trends important to the health and well-being of veterans as well as to the management of the program.

In this report the Committee made six recommendations to obtain the information it will need to assess whether VAC fully addressed the issues identified in the OAG’s audit.

With an evidence-based decision-making framework to help it manage its drug benefits program, proper cost-effectiveness strategies to manage drug costs, and a well-defined approach to monitor the utilization of drugs covered, the Committee believes that VAC will have all the right tools to improve the health and the well-being of veterans by providing them with prescription drug coverage that meets their needs in an economical way regardless of what new drugs it adds to its drug benefits list in the future.