Again, B.C. began driving harder bargains with drug manufacturers. It joined with other Western provinces to make bulk buys, which also helped lower costs. It looked more often at generics. Between 2007-08 and 2010-11, Pharmacare costs increased an average of 5.6 per cent annually. From 2011-12 to 2013-14, that number fell to an average of just 1 per cent, according to the Ministry of Finance.
Mr. de Jong believes that containing health-care costs is getting harder, with the province set to receive less in health transfer payments from Ottawa in 201718, under a new funding model linked to nominal GDP and population.
"To the extent there was ever low-hanging fruit - generic drugs, laboratory costs, etc. - I think we've dealt with most of those," Mr. de Jong said. "But with a [Health Ministry] budget of $18billion, I'd like to think there are other efficiencies that can be found."
He believes rate increases that hover near or slightly above the rate of inflation could become the new normal.
"I believe it is sustainable," he said, "and when you look around the country, more and more jurisdictions are coming to the same conclusion, mostly out of necessity."