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Ottawa has lost control of $150M program reimbursing veterans’ cannabis: audit

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OTTAWA — An internal audit by Veterans Affairs Canada suggests Ottawa has all but lost control as it shells out hundreds of millions of dollars for veterans’ medical marijuana each year without proper oversight, direction or evidence of health benefits.

Quietly published this week, the audit’s results come amid an explosion in the number of veterans seeking reimbursement for their medical pot, from around 100 in 2014 to more than 18,000 last year — with no end to the surge in sight.

The result: Veterans Affairs spent more than $150 million on medical marijuana last year — more than on all other prescription drugs combined. And that number is expected to grow to $200 million this year and $300 million by 2025-26.

Yet even as demand has grown exponentially, auditors found a continuing paucity of research about the medical benefits — and risks — of veterans using cannabis, especially those struggling with psychological trauma.

This has coincided with a lack of direction and control over who can get medical marijuana, what conditions the drug is being prescribed for, and how veterans are getting authorization for their CMP — cannabis for medical purposes.

“VAC has taken steps to operationalize its policy to provide veterans with access to reimbursement for their CMP treatment,” the audit reads. “However, there remain serious gaps in internal controls in the areas of veteran health and program management.”

Veterans Affairs started reimbursing a small number of former military personnel for their medical cannabis in 2008, at which point the approvals were granted on an extremely limited basis and with the approval of a medical specialist.

The move followed a series of court decisions more than 20 years ago that first allowed a legal exemption from criminal prosecution for the consumption of medical marijuana.

Then, in 2014, Health Canada relaxed its rules around who could authorize the use of medical marijuana to Canadians and for what conditions and circumstances. The new rules didn’t put a limit on the amount of pot that could be authorized, or the cost.

That change resulted in an explosion of claims and costs, despite the Liberal government’s decision in 2016 to limit claims to three grams per day at $8.50 per gram, with an allowance of up to 10 grams per day with medical authorization.

Auditors noted that what limited research information is available suggests individuals should use less than three grams of cannabis per day and have regular followups with their health-care providers.

Health Canada and the College of Family Physicians of Canada have also warned about the potential negative impact of marijuana use by individuals suffering from mental-health conditions, particularly post-traumatic stress disorder.

Yet the audit report says that Veterans Affairs has not provided any directions or restrictions on what kinds of health conditions are eligible for reimbursement of medical marijuana.

Virtually any medical condition is eligible. That includes PTSD, which auditors found was a diagnosis for “the vast majority” of veterans who have been reimbursed for medical cannabis.

At the same time, nearly 80 per cent of authorizations were for three grams of cannabis or more per day, while authorization letters from specialists for many veterans also “show very little sign of a strong physician-patient relationship.”

“Followup recommendations were vague, using wording such as ‘followup in six months or as clinically required,’” the report reads. “Just over half of the specialist letters we reviewed did not mention anything about followup.”

That wasn’t the only thing missing, as roughly one-third of files reviewed by the auditors did not have any record of which health-care provider had actually authorized the veteran to receive medical cannabis. And many files were missing other data.

One of the audit’s more troubling findings was that 11 health-care providers were responsible for authorizing nearly 40 per cent of all requests for medical weed, including one who had signed off on nearly 1,300 such requests.

“There (is a) small number of CMP physician authorizers with very large veteran patient loads bringing into question the robustness of the medical oversight,” the audit report reads.

It adds: “With limited guidance available on authorizing CMP, there is a risk that some health care practitioners may be over-prescribing the treatment.”

Despite these red flags, as well as the potential risk to veterans and taxpayers, auditors found the vast majority of requests for reimbursement were approved as the department focused on ensuring access rather than monitoring and control.

That included reimbursements for 45 veterans whose medical condition was listed as a substance-abuse disorder, and 46 who were also being reimbursed for anti-depressants, anti-psychotics, benzodiazepines, opioids and narcotics.

Auditors suggested the problems are the result of the department focusing too much on setting up the reimbursement process and ensuring access, noting that the entire program is being managed by the equivalent of 3.5 staff members.

“VAC can do more to identify trends in the CMP program that may be problematic and adjust policy to safeguard the health and well-being of veterans,” the report says.

“As demand for the CMP program continues to grow exponentially, VAC will need to properly manage resources and examine policy and program effectiveness.”

In response to the audit, Veterans Affairs officials say they are looking at a variety of changes in terms of which conditions are eligible for reimbursement, as well as limits on the daily amount that can authorized and for what types of products.

The department is also contemplating a new, more-detailed authorization form and additional safeguards for those requesting more than three grams per day. It is not clear when the changes may be rolled out.

This report by The Canadian Press was first published Sept. 14, 2022.

 

Lee Berthiaume, The Canadian Press

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B.C. RCMP arrest man after short standoff along Highway 1

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CHILLIWACK, B.C. – Mounties in Chilliwack, B.C., say a man was arrested after a short standoff with police along Highway 1 over the weekend.

RCMP say officers attended a call for a single-vehicle incident on Sunday evening.

They say a man was making threats and allegedly had a weapon.

There was a brief standoff, but police say the man surrendered and he was taken into custody.

The Mounties say the highway was briefly closed to ensure public safety.

They say police are recommending unspecified charges against the man.

This report by The Canadian Press was first published Nov. 11, 2024.

The Canadian Press. All rights reserved.



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Employers lock out longshore workers in Montreal after contract offer rejected

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MONTREAL – Operations at the Port of Montreal were greatly reduced Monday as the Maritime Employers Association made good on a threat to lock out nearly 1,200 longshore workers if they didn’t accept what it called a final contract offer.

The lockout took effect at 9 p.m. on Sunday, and the employers’ association is asking federal Labour Minister Steven MacKinnon to intervene. MacKinnon’s office issued a statement Monday calling on both sides at the country’s second largest port to get back to the negotiating table.

“The parties must understand the urgency of the situation and do the work necessary to reach an agreement,” his office said. “Canadians are counting on them.”

The union told a news conference on Monday it is ready to return to the table as early as Tuesday. But Michel Murray, an adviser with the Canadian Union of Public Employees, which represents the dock workers, said union overtures have received no response from the employer.

Murray told a news conference simultaneous lockouts in Montreal and Vancouver seem designed to force the federal government’s hand. Port workers in British Columbia are locked out amid a labour dispute involving more than 700 longshore supervisors, resulting in a paralysis of container cargo traffic at terminals across Canada’s west coast.

“We hope that the employer side will emerge from its silence of the past three weeks,” Murray said. “But clearly, when we look at what is happening, the lockout in Vancouver, the lockout in Montreal, we feel that it is a co-ordinated, planned attempt to increase the pressure on the federal government so that it intervenes in our file.”

Julie Gascon, CEO of the Montreal Port Authority, warned of “catastrophic” economic consequences of a prolonged conflict.

“This lockout affects not only the 1,200 longshoremen directly impacted by the work stoppage, but it also impacts over 10,000 workers in the logistics sector, from trucking and railway employees to maritime agents and pilots,” she said in a statement.

“Logistics jobs are the first to be affected, which inevitably sets off a domino effect throughout the entire economy in the markets we serve.”

Gascon told reporters in an early morning news conference effects will trickle down to other parts of the economy. “Today the conflict is impacting the supply chain, but tomorrow the conflict will impact factories as well, after that, it will be retailers,” she said.

The Port of Montreal, which moves nearly $400 million in goods every day, said essential services will continue, with liquid bulk terminals and the grain terminal among those remaining open.

The employers association in Montreal said it initiated the lockout after the unionized workers voted almost unanimously to reject a contract offer tabled last week. The workers have been without a collective agreement since Dec. 31 and had rejected two previous offers.

The employer said last week its latest offer included a three-per-cent salary increase each year for four years and a 3.5 per cent increase for the two subsequent years. The employer said the increases offered would bring a longshore worker’s total average compensation to more than $200,000 per year at the end of the six-year contract.

The union, the Syndicat des débardeurs du port de Montréal, called the figure exaggerated. It said the employer is focused on salaries, but what members want are improvements in scheduling and work-life balance. Members who are parents do not want to have stretches where they work 19 out of 21 days, it said.

Murray said it’s time to put those previous offers — which clearly cannot be the basis of any agreement — in the “shredder” and discuss what it will take for both sides to enter into a long-term agreement.

The Conseil du patronat, which represents Quebec employers, said it is very concerned about the latest work stoppage. It and a group representing manufacturers called on the federal government to intervene.

“Businesses and citizens can no longer bear the cost of this situation, which is repeated too often,” the Conseil du patronat said in a statement.

This report by The Canadian Press was first published Nov. 11, 2024.

— With files from Lia Lévesque



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S&P/TSX rises Monday, U.S. markets also trade higher as post-election wave continues

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TORONTO – Canada’s main stock index moved higher Monday, as strength in technology and financial stocks helped outweigh weakness in other parts of the market, while U.S. markets also rose.

The Dow Jones outperformed the major U.S. indexes Monday, rising 0.7 per cent, while some large tech companies weighed other parts of the market down.

“That’s just a continuation of certain sectors that rallied post-election,” said Stephen Duench, vice-president and portfolio manager at AGF Investments Inc.

The continued strength was led by so-called “Trump trades” that could benefit from the soon-to-be president Donald Trump’s promised policies. These include financial stocks and domestic industrials, as well as Bitcoin and the U.S. dollar, said Duench.

In New York, the Dow Jones industrial average was up 304.14 points at 44,293.13. The S&P 500 index was up 5.81 points at 6,001.35,while the Nasdaq composite was up 11.99 points at 19,298.76.

The S&P/TSX composite index closed up 29.88 points at 24,789.28.

Bitcoin rose above US$87,000 for the first time, riding the post-election wave as Trump has pledged to make the U.S. the crypto capital of the world.

Overall, investors have been in a risk-taking mood since the election results came out, Duench said, with commodities showing more weakness as investors move out of their safe havens.

“While gold is kind of getting hurt since the election, Bitcoin is benefiting just because of a little bit more risk-on behaviour,” he said.

The Russell 2000 — an index made up of small-cap stocks in the U.S. — has also had a great run since the election, noted Duench.

This week will bring the latest inflation report in the U.S., after the U.S. Federal Reserve cut its key interest rate again last week.

Investors are also still working their way through earnings season, which is close to done in the U.S. but still in swing in Canada.

This season has been characterized by dramatic reactions to companies that miss expectations, said Duench.

“Misses on revenues or earnings were punished more than they usually are,” he said.

This has been even more pronounced in Canada, he added.

It’s likely a symptom of markets being at record highs, said Duench.

“Investors like momentum,” he said.

The Canadian dollar traded for 71.82 cents US, according to XE.com,compared with 71.88 cents US on Friday.

The December crude oil contract was down US$2.34 at US$68.04 per barrel and the December natural gas contract was up 25 cents at US$2.92 per mmBTU.

The December gold contract was down US$77.10 at US$2,617.70 an ounce and the December copper contract was down eight cents at US$4.23 a pound.

— With files from The Associated Press

This report by The Canadian Press was first published Nov. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.



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