Health and Community Services
May 18, 2007

Provincial Drug Program Office Officially Opens in Stephenville

Over 20,000 residents in the province are benefiting from lower drug costs under the new Low Income Drug Program. The Honourable Ross Wiseman, Minister of Health and Community Services, provided an update on the program as he joined the Honourable Joan Burke, MHA for St. George�s-Stephenville East, and Tony Cornect, MHA for Port au Port, for the official ribbon-cutting ceremony for the new Newfoundland and Labrador Prescription Drug Program (NLPDP) office in Stephenville today.

"Thousands of Newfoundlanders and Labradorians are benefiting from increased drug coverage under this new program, which was the first expansion to the drug program since 1980," said Minister Wiseman. "Today we celebrate the success of this new program as well as the opening of the new NLPDP office, which has created new economic opportunities for a rural area of our province."

In Budget 2006, the Provincial Government announced an investment of $32 million annually to provide drug coverage on a co-pay basis to low income residents, not currently covered by the NLPDP, who are in need of financial assistance to pay for their prescription drugs. It includes families with children with annual net household incomes up to $30,000; couples earning up to $21,000; and, singles earning up to $19,000 a year.

In addition to those already approved for the program, 400 new applications are being received each week, representing approximately 760 potential new beneficiaries on a weekly basis. The program has the potential to benefit approximately 85,000 individuals in total.

The new office employs 15 new permanent staff. The office manages the administration of drug cards and application processing for the NLPDP. The office is also responsible for handling inquiries from pharmacies and beneficiaries of the NLPDP, which are in the range of 700 calls per day.

As well, the responsibility for issuing cards to the NLPDP�s 53,000 beneficiaries under the Income Support Program has been transferred from the Department of Human Resources, Labour and Employment and the Regional Health Authorities to the new NLPDP Stephenville office.

"Our area enthusiastically embraced the opportunity to provide this tremendous service to our province," said Minister Burke. "With a first�class workforce, I am confident that this enthusiasm is well demonstrated by quality work and commitment to service. Placing this new NLPDP office in Stephenville has certainly demonstrated government�s commitment to, and confidence in, our area."

"I am thrilled with the opening of this new office," said MHA Cornect. "The facility will provide a new level of convenience for the people of Stephenville and surrounding communities, while also generating some positive economic spin-offs for the area."

To assist pharmacies in processing the large number of claims associated with the expanded drug program, the Provincial Government implemented a new Real-Time Adjudication System concurrent with the launch of the Low Income Drug Program. The online, billing system will improve service delivery for pharmacists and NLPDP beneficiaries, by allowing drug claims under the NLPDP to be adjudicated as soon as pharmacists enter prescriptions in their computer. This means that any issues with the claim are identified and reported immediately to the pharmacist. The new system is implemented in 182 out of 187 pharmacies across the province to date.

Additionally, in Budget 2007 government announced an additional $17.5 million enhancement to the NLPDP which will assist individuals and families with high drug costs. Effective October 2007, individual families will have their annual out-of-pocket drug costs capped at an amount not exceeding 10 per cent of their net family income. Those at net incomes up to, but not including, $40,000 will pay a maximum of five per cent of their net income; those with net incomes of $40,000 to under $75,000 will pay a maximum of 7.5 per cent; and, those earning $75,000 to under $150,000 will pay a maximum of 10 per cent. Further details on this enhancement, including the application process, will be provided in the coming months. The Stephenville office will administer this program as well.

Minister Wiseman added, "Through these investments in our provincial drug program we are improving access to prescription medications and easing the financial burden of high cost drugs, which will have a direct positive impact on the health and well-being of many individuals in our province."

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Media contact:
Tansy Mundon
Director of Communications
Department of Health and Community Services
709-729-1377, 685-1741
tansymundon@gov.nl.ca

2007 05 18                                                 11:50 a.m.

 


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