National pharmacare, reference-based pricing, and drug R&D: A critique of the National Forum on Health's recommendations for pharmaceutical policy

In February 1997, the Canadian National Forum on Health presented its recom mendations for a pharmaceutical policy for Canada. These recommendations in clude moving toward a universal coverage, publicly funded drug plan; suppor t for reference-based pricing as a method of containing drug plan costs; an d requiring that pharmaceutical companies turn over a portion of their rese arch funds to the national research granting agencies. This paper provides a critical assessment of these policy recommendations, with a focus on whet her they are likely to achieve long-term reductions in pharmaceutical and h ealth-care expenditures in Canada.