The Ministry of Health is terminating its generic drug pricing agreement with the B.C. Pharmacy Association and the Canadian Association of Chain Drug Stores, effective April 1.

Health Minister Michael de Jong has asked staff to draft legislation to control and further lower the prices of generic drugs.

Patients and the public health-care system can expect to save significant amounts of money on the cost of generic prescription drugs this year, said de Jong today.

Currently, generic drugs cost 40 per cent of the brand name price. That rate is already scheduled to lower to 35 per cent on April 2.

Through legislation, the Province will aim for a reduction to 25 per cent of the cost of the brand name drug by April 1, 2013.

The Province plans to have the legislation introduced during the spring sitting of the legislature.

The Province expects to reinvest savings achieved in the health-care systems to enhance patient care in a variety of ways, including keeping PharmaCare affordable for lower-income B.C. seniors and families, increasing funding for pharmacy services such as medication management and in continuing to protect rural and remote pharmacies.

In July 2010, The Ministry of Health reached an agreement with the B.C. Pharmacy Association and the Canadian Association of Chain Drug Stores to significantly lower the price of generic drugs. However, the Province did not realize the estimated savings promised and is therefore terminating the agreement.

The Province expects to recoup those losses fully and achieve additional savings through a legislative framework.

Quote:

Minister of Health Michael de Jong -

"Our 2010 agreement on generic drugs promised significant savings for B.C. taxpayers and the health care system, but much of those savings did not materialize. At this time, we do not have confidence we will see the savings promised through an agreement with the B.C. Pharmacy Association and the Canadian Association of Chain Drug Stores. We need those savings now, more than ever, and so I have asked my staff to draft legislation."

Quick Facts:

• An example of the expected savings: a typical 30-day prescription of the cholesterol-lowering drug Lipitor costs $55, not including standard pharmacy fees.
• The generic version of the drug costs 40 per cent of the brand name cost, or about $22.
• Through the draft legislation, the Province aims to lower the generic drug price to 25 per cent, or $14.

Learn More:

For more information, please visit: www.health.gov.bc.ca

A backgrounder follows.

Media Contact:

Ryan Jabs
Media Relations Manager
Ministry of Health
250 952-1887 (media line)

BACKGROUNDER

B.C. committed to sustainable public drug coverage

• The Province is committed to British Columbians having access to the best drug therapies at the best price for taxpayers.
• PharmaCare is one of the fastest growing areas of the health-care budget. Since 2001, its budget has increased by approximately 74 per cent, from $654 million to more than $1.1 billion for 2011-12.
• B.C. works hard to control rising drug costs and provide value to British Columbians. The Canadian Institute for Health Information has reported B.C. has the lowest per capita prescription drug expenditure among the Canadian provinces at $573 per person.
• PharmaCare is one of the most comprehensive programs in the country and provides coverage to every British Columbian. B.C. is one of the few provinces to provide such extensive drug coverage, from 100 per cent coverage of psychiatric medications for those in need, to protecting all residents from catastrophic drug costs, to providing free access to first-dollar coverage for families on income assistance and people in residential care.
• Through Fair PharmaCare, every British Columbian is eligible for assistance with prescription costs. Deductible levels are set up to reflect patients' ability to pay. The lowest income earners pay no deductible at all, and seniors born in or before 1939 receive enhanced assistance.
• Ten per cent of patients registered with PharmaCare were eligible for 100 per cent coverage on Jan. 1, 2011. This works out to some 274,000 patients, most of whom are registered with Plan C (income assistance).
• A 2010 study from the Canadian Centre for Policy Alternatives notes that "British Columbia is often held up as a model for the rest of Canada in terms of pharmaceutical policy and health outcomes." These positive health outcomes, CCPA noted, are achieved at a lower cost than other provinces due to B.C. residents having the lowest per capita cost for prescription drugs, paying lower unit prices for their drugs, using less medication, and using less expensive therapeutic options.

Media Contact:

Ryan Jabs
Media Relations Manager
Ministry of Health
250 952-1887 (media line)