New Generic Drug Pricing Model Will Result in Savings for Newfoundlanders and Labradorians

The Honourable Susan Sullivan, Minister of Health and Community Services, today reiterated the Provincial Government’s commitment to providing low cost quality prescription medications to all residents of Newfoundland and Labrador while protecting seniors under the provincial drug plan from paying more. In addition, there will be savings for seniors who pay out-of-pocket and it is expected that the policy will benefit seniors with private drug coverage.

“Our new generic drug pricing model will benefit all residents of our province, including our seniors,” said Minister Sullivan. “We estimate savings to be in the area of $30 million annually, beginning in 2013-14, once our generic pricing model is fully implemented. These savings are estimated based on price reductions of current generics, as well as from brand drugs expected to come off patent over the coming year.”

The Provincial Government has committed to reinvesting a portion of the savings achieved through this policy directly into the health care system for the benefit of all Newfoundlanders and Labradorians. The Provincial Government also remains committed to ensuring this new pricing model does not negatively affect beneficiaries of the Newfoundland and Labrador Prescription Drug Program’s 65Plus Plan.

“We are moving ahead with our generic drug pricing model so that all residents can benefit from the savings realized in other provinces,” reiterated Minister Sullivan. “We would never download the cost of our savings on the seniors of our province, to suggest otherwise is absurd. We know the burden of paying for medications can be overwhelming for some in our province, especially our seniors, and that is why we have promised to protect seniors who are beneficiaries of the Newfoundland and Labrador Prescription Drug Program from paying higher costs. This model will also result in savings for seniors who pay out-of-pocket and those on private drug plans.”

Currently six other provinces have generic drug pricing models and a seventh recently announced changes they will implement in June. The proposed policy in Newfoundland and Labrador has drawn on the experiences and impacts of these provinces to ensure that decisions are based on best practices.

“I have to ask the Opposition in our province if they think people in Newfoundland and Labrador should have to pay more for their generic medications than our counterparts in other provinces,” said Minister Sullivan. “Our government certainly does not and we are moving forward with a comprehensive model that will save our residents money, protect seniors of the province and provide reinvestment opportunities to pharmacies.”

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Media contact:
Jennifer Tulk
Director of Communications
Department of Health and Community Services
709-729-1377, 699-6524
jennifertulk@gov.nl.ca 

2012 03 27             1:20 p.m.