Thank you, Mr. Chair and members of the committee, for giving us the opportunity to speak with you today.

Thank you for inviting me to talk to you today as part of your study on Patented Medicine Prices Review Board's guidelines.

The Canadian Life and Health Insurance Association is a voluntary association with member companies which account for 99% of Canada's life and health insurance business. These insurers provide 29 million Canadians with products that contribute to their financial security, including supplementary health insurance.

Our members strongly support the amendments that have been proposed to the Patented Medicine Prices Review Board and that are coming into effect on January 1. Our member companies, which include non-profit regional health insurers, provide prescription drug and other health benefit plans to over 142,000 businesses, large and small, across Canada. Over 26 million Canadians depend on these workplace insurance plans for such benefits as prescription medication, dental care, eye care, physiotherapy and mental health supports.

With so many Canadians struggling and worrying about their family's health and security, now more than ever Canadians want to know what they can count on. Canadians with workplace plans want to know they can count on those plans to be there when they need them. We know that 87% of Canadians value their existing coverage. Moreover, we know that while all Canadians support smart reforms to improve the current system, they do not want it to disrupt their existing coverage.

For the past nine months, as the COVID-19 pandemic has unfolded, insurers have been working with employers to ensure that Canadians can continue to rely on their workplace plans. To help them through this difficult time, employers have received direct assistance of several hundred million dollars, including discounts and premium reporting.

Like the health care system in general, private insurance plans were put to the test by the COVID-19 pandemic. I'm pleased to say that workplace plans have passed the test. The health crisis has shown that these plans are resilient.

More than 98% of the 26 million Canadians who had coverage through their health benefit plans in March continue to be covered. Canadian employers and their employees continue to rely on these plans for a wide range of supplementary health benefits, as I mentioned above. However, we cannot take this for granted.

Rising drug costs have been and will continue to be a strain on the sustainability of drug programs, both public and private, going forward. High and rising drug costs are a challenge that must be addressed. Currently, Canadians pay some of the highest prices in the world for patented medicines. These costs put pressure on both employer-sponsored and government plans. That's why the amendments to the Patented Medicine Prices Review Board are so important.

Over time, these changes will bring Canadian prices more in line with those in other prosperous countries around the world. This will lead to savings for Canadian provinces and employers, savings that will not only make programs more viable, but will also give them the ability to cover new drugs on the market, which are often very expensive.

It's not just about helping public and private insurance plans. The reforms will translate directly into savings for those who pay out of pocket.

Ultimately, we believe these amendments strike the right balance between reducing the high cost of prescription drugs in Canada, while also ensuring Canadians have access to affordable and necessary medications. As I mentioned, our life and health insurers are proud of the steps we've taken to keep workplace plans in place and provide benefits for 26 million Canadians. Ensuring we pay a fair price relative to other developed countries is important if we're to sustain coverage for Canadians into the future and make fiscal room to cover the newer, expensive medications that are in development.

After consultations that have spanned several years, the PMPRB put forward their final guidelines earlier this fall. Canada's life and health insurers are strongly supportive and urge members of this committee to support their implementation as planned on January 1. These are concrete and immediate measures that will lower patented drug costs for all Canadians and contribute to the future sustainability of prescription drug plans.

Thank you for your time. I look forward to your questions and the opportunity to provide additional detail to help your study if you have any questions for me later.

Thank you, Mr. Chair.

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