New legislation has been proclaimed to govern the Newfoundland and Labrador Prescription Drug Program (NLPDP) as well as other pharmaceutical programs and services provided by the Department of Health and Community Services. The Pharmaceutical Services Act provides enhanced transparency and accountability for the core elements of the Newfoundland and Labrador Prescription Drug Program (NLPDP); the Tamper Resistant Prescription Pad Program; and the Newfoundland and Labrador Interchangeable Drug Products Formulary.

"The Newfoundland and Labrador Prescription Drug Program, with an annual budget of over $127 million, is one of the most extensive programs in the province," said the Honourable Ross Wiseman, Minister of Health and Community Services. "Legislation for the provincial drug program is fundamental to ensure an efficient program with the appropriate transparency and accountability measures in place."

The new act provides clarity by defining eligibility requirements and appeals processes for beneficiaries under the NLPDP as well as the decision-making process for coverage of new drug therapies. Furthermore, the act gives government the authority necessary to ensure that an effective and efficient audit function is in place to maintain the financial sustainability of the program.

Until now, Newfoundland and Labrador was the only province in Canada without legislation to guide the operations of its provincial drug program. The need for the new legislation was highlighted in a joint review of the NLPDP conducted by the Department of Health and Community Services and Treasury Board, as well as by the Auditor General in his 2005 report.

The need for legislative support, which was passed in the fall sitting of the House of Assembly, becomes even more important with the introduction of the new Low Income Drug Program, which requires information sharing with the Canada Revenue Agency.

"Enacting the Pharmaceutical Services Act was a necessary step towards the expansion of the provincial drug program," added Minister Wiseman. "This legislation provides the necessary support for information sharing between the federal and provincial governments, pharmacists and physicians as well as other key organizations."

As well, the legislation introduces a payor of last resort requirement for the NLPDP, requiring individuals with alternate drug insurance to bill their private insurer first and government last.

As a key part of the Poverty Reduction Strategy, government committed to an investment of $32.8 million annually to expand eligibility under the current NLPDP to include more low income families and individuals. The expansion will provide a form of drug coverage to an additional 97,000 individuals, bringing the total to almost 40 per cent of the population.

Media contact:
Tara Furlong
Communications Specialist
Department of Health and Community Services
709-729-2888, 727-2701
tarafurlong@gov.nl.ca