:
Mr. Chair, thank you for this opportunity to discuss our 2016 spring report on drug benefits for veterans. Joining me today is Casey Thomas, the principal responsible for the audit.
In our audit, we examined three areas. First, we examined the process that Veterans Affairs Canada used to add, remove, or limit access to drug benefits. Second, we looked at the department's cost-effectiveness strategies. And finally, we examined how the department monitored the utilization of drugs by veterans.
[Translation]
We found that decisions about which drugs to cover were poorly documented and not clearly based on evidence such as veterans' needs and clinical research. We also found that timelines had not been established for the implementation of decisions. In one case, a decision to limit access to a narcotic was still not implemented two years after the decision had been made.
We recommended that Veterans Affairs Canada implement a decision-making framework that specifies the type of evidence required and how the evidence should be considered. The department should use this framework in deciding which drugs to pay for and to what extent it would pay for them. We also recommended that the framework contain a requirement for the department to update the drug benefits list on a timely basis.
[English]
We found that Veterans Affairs Canada used some cost-effectiveness strategies, such as substituting generics for brand name drugs and negotiating reduced dispensing fees with pharmacies. However, the department did not assess whether these strategies achieved the expected results. The department had also not implemented strategies related to expensive new drugs entering the market.
We recommended that Veterans Affairs Canada periodically review its cost-effectiveness strategies to assess whether they were up to date and leading to reduced costs for drugs and pharmacy services. In addition, we recommended that the department identify other potential cost-effectiveness strategies to pursue on its own or in collaboration with other federal departments.
[Translation]
We found that although the department monitored some high-risk drugs, it had not adequately monitored drug use trends that were important to veterans' health and the management of its program.
We recommended that Veterans Affairs Canada develop a well-defined approach to monitoring drug utilization. This approach should serve the needs of veterans and help the department manage its drug benefits program.
[English]
With respect to marijuana for medical purposes, we found that the decision to cover marijuana for medical purposes was made at the senior management level rather than by the department's formulary review committee. We were unable to determine why this decision did not go through the committee's normal review process.
We also found that Veterans Affairs Canada had identified the need to contain the rising cost of marijuana for medical purposes and had therefore limited the coverage to 10 grams per day. This amount, however, was double what was identified as appropriate in the department's consultations with external health professionals and more than three times what Health Canada reported to be the amount most commonly utilized by individuals for medical purposes.
[Translation]
The veterans' primary care physician was not always the physician who authorized the veteran to utilize marijuana for medical purposes. Although the department had concerns about such situations, it had not systematically monitored authorization trends to determine whether they were of concern. In addition, the department had not monitored whether veterans using marijuana were also using drugs prescribed to treat conditions such as depression.
We note that Veterans Affairs Canada agreed with our recommendations and committed to taking corrective action.
[English]
Mr. Chair, this concludes my opening remarks. We would be pleased to answer any questions the committee may have. Thank you.
:
Mr. Chair, members of the committee, Auditor General, ladies and gentlemen, I'm pleased to be here today on behalf of Veterans Affairs Canada. Joining me today is Michel Doiron, the assistant deputy minister for our service delivery branch, and Retired Captain Dr. Cyd Courchesne, our chief medical officer.
I wish to thank the Auditor General and his staff for their ongoing contribution to assist the department in achieving effectiveness, efficiency, and accountability as we support the well-being of our veterans and their families.
As the Veterans Affairs Minister, the Honourable indicated, immediately following the tabling of the Auditor General's report, we accept all of the report's recommendations. We are taking immediate action to ensure the health care benefits program is efficient, valued, and supports the needs of our veterans.
To give you an idea of its size, in fiscal year 2014-15 the Veterans Affairs drug benefits program supported the costs for drugs for approximately 51,000 veterans in the order of $80 million. While the report found that most of the 2004 Auditor General recommendations related to the program were implemented, it did highlight areas for improvement with corresponding recommendations.
[Translation]
The media coverage is concentrated on the cost of marijuana for the Government of Canada and on maximum doses, which risks diverting attention from the fact that the report discusses all drug benefits.
[English]
We find as well that sometimes the department's role in the payment of drug benefits could be misunderstood. To clarify, it is Health Canada that is responsible for the regulation of medications for all Canadians, including our veterans. Veterans Affairs Canada does not prescribe medication; rather, it pays for medical treatments authorized by the veteran's physician or health professional.
To review, the Auditor General's report found the following key four points.
First, we do not have an adequate process in place to make evidence-based decisions related to our drug benefits list. Second, we should review our cost-effectiveness and program efficiency strategies. Third, we need to contain the rising costs of marijuana for medical purposes. Finally, we have not analyzed the use of drugs that are not on our drug list but are accessible, on a case-by-case basis, to eligible veterans.
[Translation]
Implementing the Auditor General's recommendations will help us to better achieve our goal of supporting the health and well-being of our veterans in an efficient and effective manner.
I will now briefly discuss VAC's current or planned activity in relation to each of these priority areas.
[English]
First and foremost, we need to ensure that systematic evidence-based reviews support our decisions with regard to the drug benefit list. To determine which drug should be included on our list, we look to the expertise of the Canadian Agency for Drugs and Technology for Health. Once Health Canada has approved a drug for use in Canada, this independent agency relies on an advisory body to review clinical cost-effectiveness and patient evidence, and makes recommendations about listing it on provincially-based, publicly-funded drug plans.
A Veterans Affairs national pharmacist was hired last year and is working now with public health plan counterparts to identify best practices in formulary management. An enhanced drug benefit management team is now reviewing the program and developing a strengthened decision-making framework which will identify the types of evidence to be considered, when to consider them, and how they will be assessed to make formulary decisions.
We're also improving timely access to a pharmaceutical support program for those men and women being released from the Canadian Armed Forces. For example, last year in April we implemented changes to ensure that retiring sailors, soldiers, airmen and women continue to receive the same drug benefits from Veterans Affairs that they were receiving from the military based upon drug history and their eligibility for Veterans Affairs programming.
[Translation]
Veterans Affairs Canada will examine and assess the cost effectiveness of its drug list with its federal partners and the Pan-Canadian Pharmaceutical Alliance in order to improve cost effectiveness by May 2017.
[English]
The department will leverage its partnerships with Health Canada and other federal drug plans and jurisdictions, and consult with private industry to identify opportunities to implement cost-effective strategies for our program.
Further, Veterans Affairs Canada will regularly assess and review its drug benefits list and claims data. This analysis will inform program changes to help reduce the administrative burden for veterans and lower the costs for delivering the program.
With regard to marijuana for medical purposes, it would be worthwhile to review the context of providing access for marijuana for medical purposes to our veterans.
In 2001, Health Canada began providing controlled access to marijuana for medical purposes to Canadians. It controlled the adjudication of requests, product distribution and costs, as well as setting consumption limits. Supporting regulations outlined which health conditions marijuana could be approved for and which specialists could prescribe marijuana for medical use.
In the Canadian health care system, as I mentioned, the veteran's primary care physician is responsible to determine the appropriate health care treatments to meet his or her patient's needs.
In 2007, based on the approval of a senior manager, the department approved the payment for marijuana for medical purposes on an exceptional basis for one client for compassionate reasons. Starting in 2008, Veterans Affairs allowed for coverage of costs related to marijuana for medical purposes for eligible veterans who were approved by Health Canada. In fiscal year 2008-09, five clients were reimbursed, with expenditures in the order of $19,000. By 2013, these numbers rose to 112 approved clients with expenditures in the order of $400,000.
In 2014, Health Canada introduced regulatory changes that reduced its role to regulate and licence private producers. Restrictions were removed on the quantity of marijuana that could be authorized by physicians and the price was established by private producers licensed by Health Canada.
Based on these changes, Veterans Affairs Canada instituted a practice to approve requests from eligible veterans for up to 10 grams per day if authorized by their physician or health care practitioner, and if they are registered with a Health Canada licensed producer. The Veterans Affairs director general of health professionals, who is also Dr. Courchesne, reviews any requests that exceed the 10 grams per day. While six such requests were approved previously and now grandfathered, no amounts greater than 10 grams per day have been approved under the current guidelines.
Since 2014, the number of veterans using marijuana for medical purposes and the associated expenditures have increased significantly.
Earlier this year, the Minister of Veterans Affairs, the , requested a departmental review to assess how we provide marijuana for medical purposes as a benefit to veterans.
[Translation]
This departmental review, including various consultations, was launched in order to assess the current approach to providing marijuana for medical purposes to veterans as a medication. We will be able to take stock of the review in the coming months.
Departmental representatives are consulting medical specialists, suppliers and veterans who have been prescribed medical marijuana in order to learn more about the issue. These consultations are intended to help devise an effective monitoring approach to ensure veterans' well-being.
[English]
With respect to monitoring drug utilization, I wish to assure veterans and their families that there are existing alerts in our drug benefits system, as well as at the pharmacy and provincial health care system levels. Nevertheless, we absolutely agree that we need a clearer approach to monitoring drug utilization and detecting trends.
We will ensure that our monitoring practices are systematically reviewed to ensure optimal efficiency, while taking advantage of the best practices of other departments and jurisdictions. Strengthened processes will include regular and documented reporting to our formulary review committee.
[Translation]
All changes to monitoring by VAC of medication use will respect the fact that veterans' health care is mainly the responsibility of their physicians or the accredited health professionals and the health care system.
[English]
Mr. Chairman, ladies and gentlemen, I want to assure you that the work is under way now to address our shortcomings, and we will have completely addressed each of the recommendations in the Auditor General's report by the spring of 2017.
Again, I wish to thank the Auditor General and his staff for their work and assistance in supporting the well-being of our veterans, and I thank you for your attention.
Merci.
Ladies and gentlemen, I thank you for being here today and for participating in this exercise which we consider very important.
As parliamentarians, it is our responsibility to try to improve the efficiency of many practices in the different departments, and that is what we are trying to do this morning. I will not speak about the recommendations of the Auditor General nor of the replies that you have provided to them, as these are intentions.
To begin, I have a rather philosophical question for you. We are aware of the scope of the problem affecting the valiant and courageous military men and women who serve our nation, and then suffer from post-traumatic stress when they return from military activities. At the Department of Veterans Affairs, are you sure that the solutions you implement daily are the best?
I'm going to put my question differently. Would it not be relevant to revise the entire medical treatment system for veterans, setting aside the one that is in place and establishing a new one? Needs are growing exponentially. Sick people are consuming marijuana, the costs involved in reimbursing marijuana are exploding, and drugs are not monitored. Moreover, the decisions are taken by public servants without being validated by the committee. This concerns me.
Could you, this morning, give us a real picture of the current situation? Would it not be advisable to re-evaluate the whole situation?
:
Thank you all for coming, Deputy and General—you have so many titles. It's good to see you again, sir.
It's fair to say that Canadians have been very unhappy with the way veterans have been treated in Canada. One of the things that the new government promised was that there would be a change. I'm hoping that the answers we hear today indicate that there's going to be a change. That it's not good enough anymore to just say nice things and platitudes about veterans and then ignore them once they come home, especially if they're broken and need help. I'm hoping that we begin to turn the corner, and we hear that today from the answers that we're getting. Because quite frankly, it's been disgraceful. That change needs to happen.
Chair, before I move to my detailed question, in looking at the action plan, which is a key part of what we do, I've already suggested that maybe we need to also look at this in terms of our own self improvement. I know you're interested in keeping us state of the art, pushing the envelope. We do as good a job as possible. We've already talked about having a little more analysis of the action plans, even asking the AG for comments around time frames and such.
May I also suggest to our analysts when we're looking at this, that maybe we need a template. It would be a lot easier and more efficient for us to focus on what we need if all the action plans were always laid out the same, rather than our having to go through each one to figure out how they have been laid out and having to do that work. These are small things or details that the public is not all that interested in, but they are important to us, and I would hope that at some point we can refine our efforts in this area.
The Auditor General would know, and Deputy, I think you would know from your past role, that one of the things this committee takes incredibly seriously is the recommendations in previous audits, especially when the ministry has said, “We agree with the findings” and then the Auditor General goes back and finds out that what had been suggested didn't get done. Let me say to you, Deputy, we've had occasions where there have been multiple audits and the department is still saying they agree and all of the nice flowery things that we want to hear, but then nothing happens. This really launches us. It certainly launches me when I see that.
We have some elements of that here again today. I reference page 14 in the English document, paragraph 4.59 on pharmacy alerts, which states:
In response to observations from our 2004 audit, Veterans Affairs Canada strengthened its alerts for the potential overuse of narcotics and benzodiazepines, which are sedatives, so that alerts are issued regardless of where the veteran filled the prescription. The Department also partly addressed our recommendation to monitor instances in which pharmacists dispense drugs to veterans in spite of a pharmacy alert. These instances are monitored when they involve potential abuse or overuse of narcotics and benzodiazepines, or when a veteran tries to obtain the same prescription from the same pharmacy within a seven-day period. However, all other instances in which a pharmacist dispenses a drug in spite of an alert, such as those related to a potential drug interaction, were not monitored.
I can ask the AG to explain further, but it sounds relatively self-explanatory. Can you please give us an answer why something that was uncovered in 2004 and needed to be fixed was only partly fixed? There are some parts of that audit and the commitments this department made that have not been honoured. Please, it's time for accountability. Why is that?
:
I want to follow up on my colleague's comments about the 10 grams a day. I have a good friend who is paraplegic, and he takes medical marijuana for that exact use. In New Brunswick, until recently the musculoskeletal rate was 1.5 grams to 2.5 grams per day. It was increased in the last year to 3 grams per day, which is actually at the high end of the average doses. If you go to the Health Canada website and look at the recommendations on there, it says:
For smoking and vaporizing, the median reported dose was 1.5-2.0 grams per day respectively.
For edibles, the median reported dose was 1.5 grams per day.
For teas, the median reported dose was 1.5 grams per day.
It's your department, and basically Veterans Affairs has identified that the need of a veteran is more than four times the amount of an average Canadian.
I'm not done yet, but when I'm done, you're more than welcome to speak.
I also know that the cost for medical marijuana is, at the low end, $6 on average, and at the high end it's $10. So it's an average of $8. I do understand there are strains that cost upwards of $20, but that's at the very high end, and it's for a very concentrated product.
If you have a veteran who is using 10 grams per day, which is more than 4 times the amount of the average user, at the high end of the dosage levels, to me, something in that just does not compute. Also, if you figure it out by average daily usage, in the medical marijuana study that was done of current medical usage across the country, the average usage was identified at around 90 grams per month total usage. For a veteran who is taking 10 grams per day, that would amount to over 300 grams per month. At an average cost of $10 a gram, that's $30,000 a year.
I question whether all of that usage is actually being done by the veteran. Maybe that's not a conversation that anybody wants to have, but I'm lobbing the question out here because it's right there.
I have a second question. What is the specific budgeted amount for medical marijuana forecast for 2016-17 and 2017-18?
I do believe those numbers should be available somewhere because Veterans Affairs' report on plans and priorities for 2016-17 does include budgetary numbers, so obviously there is a budgeted number.
Doctor, is it pronounced “benzodiazepine”—did I get it? Am I close?
We're getting there General, we're getting there.
All joking aside though, I wanted to complement Madame Mendès on her comments. I was having the same feeling, that we're starting to walk down a moralistic road in terms of evaluation, rather than a medical one.
Dammit, if that's what soldiers need when they come back after defending this country and they're in those kinds of war zones.... Nobody was being overly moralistic when we sent them over there; nobody was being overly moralistic with their families when there was the potential that they may not even come home alive.
Dammit, if this helps them, then it needs to be there. Nobody's talking like this about the cost of cancer drugs. We have to talk about them in terms of containing the cost, but not about whether or not morally we think such and such is an appropriate medicine to be giving to a fellow Canadian citizen who put on that uniform and went off into that war zone and got broken and came back and believed that the commitment this country made to them would be honoured.
I'm so glad you went down that road. I appreciate it and I support 100% what you said.
Having said that, though, we have an obligation involving our approach to drugs. I want to bring us back to the Auditor General's report, page 10, paragraph 4.42:
We found, however, that over the following two years Department officials did not pursue Product Listing Agreements with pharmaceutical companies. We also found that not using them has limited what it can include on its drug benefits list because the costs of some drugs are too high.
When I look at the action plan, on page 2 I see under “Cost Effectiveness Strategies”:
Continue working with other federal drug partners and the Pan Canadian Pharmaceutical Alliance to explore opportunities to enter into Product Listing Agreements
What's the problem?
I would have thought the response to the recommendation would be that yes, we've done it, or it's on the brink of being done, or we're negotiating the actual final details.
Why is it so difficult to get into this agreement?
:
I'm sorry, I don't mean to interrupt you, but we're very tight on time.
Building on your point, we found that 53% of the approximately 1,400 authorized to use marijuana for medical purposes had obtained this authorization from four physicians. You've said that a lot of physicians won't prescribe it. There's probably a reason they won't prescribe, and I don't think it's because they're engaging in moralism, as some had suggested earlier. It's probably because they have some questions as to whether or not marijuana is the right treatment for the person who is sitting before them in the doctor's office.
I've been to the operational stress injury clinic here in Ottawa, and they specifically say that in order to treat post-traumatic stress, you have to confront the underlying trauma that caused it. This is very difficult and painful because people who come back from theatre are experiencing extraordinarily painful memories, and they have to relive those to treat the stress symptoms they are enduring.
My worry is that marijuana is being used as a numbing treatment rather than as a real treatment for the underlying cause of post-traumatic stress, which could be why so few doctors are prepared to prescribe it.
The other worry I have is that the quantities in question are a maximum of 10 grams a day. According to the Government of Canada, one gram produces two joints. So with 10 grams, that's 20 joints a day. That's like smoking a pack of cigarettes, with every single cigarette being filled 100% with marijuana. I have a hard time believing that this is medically sound, based on Health Canada's.... Mr. Harvey found earlier today that compared to Health Canada's observations on marijuana consumption, the amounts here are four, five, six times higher than those highlighted on the Health Canada website. Do you share any of these concerns about the possible excessive prescription of this solution for our veterans?