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Federal $2.5B for COVID-19 Tests

Full Title: An Act respecting certain measures related to COVID-19

Summary#

This bill lets the federal Minister of Health spend up to CAD $2.5 billion on COVID-19 tests and related costs. It also lets the Minister transfer COVID-19 tests and test instruments to provinces, territories, and any body or person in Canada. Payments can cover costs incurred on or after January 1, 2022. Transfers can include tests the federal government acquired on or after April 1, 2021 (Payments out of C.R.F.; Transfers).

  • Authorizes up to $2.5 billion for COVID-19 test-related expenses (Payments out of C.R.F.).
  • Allows transfers of tests and test instruments to provinces, territories, and any body or person (Transfers).
  • Covers expenses incurred on or after January 1, 2022; transfer authority applies to items acquired on or after April 1, 2021.
  • Sets no rules on who gets tests first, pricing, reporting, or timelines; these are left to the Minister’s discretion (Bill text).

What it means for you#

  • Households
    • You may see more COVID-19 tests available if your province, school, pharmacy, or community group receives federal test kits. The bill allows these transfers but does not require free distribution or set eligibility (Transfers).
  • Workers
    • Your employer or workplace could receive test kits from federal transfers and offer testing. The bill permits transfers to any body or person but does not mandate workplace programs (Transfers).
  • Businesses and Non-profits
    • You could receive test kits directly from the federal stock if the Minister chooses. The bill sets no application process, criteria, or price rules (Transfers).
  • Health providers and facilities
    • Hospitals, clinics, labs, and long-term care homes can receive tests and instruments used for testing. This could support screening capacity, subject to federal allocation decisions (Transfers).
  • Provinces, territories, and municipalities
    • You can receive federally acquired tests and instruments for distribution or use in public programs (Transfers).
    • The Minister may make payments for COVID-19 test expenses incurred on or after January 1, 2022. The bill does not specify recipients or cost-sharing terms (Payments out of C.R.F.).

Expenses#

Estimated net cost: CAD $2.5 billion maximum (one-time authority; timing tied to expenses incurred on/after January 1, 2022).

  • No fiscal note published in the bill. Key figures from the text:
ItemAmountFrequencySource
Payments authority for COVID-19 testsCAD $2.5 billion (cap)One-time cap; for expenses incurred on/after January 1, 2022Payments out of C.R.F.
Authority to transfer tests/instruments$0 specifiedOngoing authority to transfer items acquired on/after April 1, 2021Transfers
  • Administrative costs, unit prices, and distribution costs: Data unavailable.

Proponents' View#

  • Ensures funding is available to secure a large supply of tests during surges, up to $2.5 billion, without needing another bill (Payments out of C.R.F.).
  • Speeds delivery by allowing direct transfers to provinces, territories, and other recipients, reducing bottlenecks (Transfers).
  • Allows reimbursement or coverage of eligible costs incurred since January 1, 2022, which can stabilize provincial and partner budgets (Payments out of C.R.F.).
  • Provides flexibility to send tests and instruments where they are most needed, including to specific facilities or communities (Transfers).
  • Keeps scope narrow and time-linked to the pandemic testing need by limiting the authority to COVID-19 tests and related instruments (Bill text).

Assumptions to note:

  • Assumes demand for tests remains high and supply can be procured at needed volumes and prices (not specified in the bill).
  • Assumes provinces and other recipients can distribute tests effectively (not addressed in the bill).

Opponents' View#

  • Limited accountability: the bill sets no reporting, allocation criteria, or oversight requirements for how tests or funds are distributed (Bill text).
  • Broad discretion: transfers may go to “any body or person,” with no priority rules for high-risk or low-income groups (Transfers).
  • Budget uncertainty: $2.5 billion may be too little or too much relative to actual demand; the bill provides no usage forecast or unit cost data (Payments out of C.R.F.).
  • Unclear recipient payments: the bill authorizes payments for expenses but does not specify who receives funds, under what agreements, or at what reimbursement rates (Payments out of C.R.F.).
  • Coordination risk: the bill does not address how federal transfers align with provincial procurement, which could create overlap or uneven distribution (Bill text).
Healthcare
Economics

Votes

Vote 89156

Division 28 · Agreed To · February 15, 2022

For (100%)