Lower Generic Drug Costs Will Help All Newfoundlanders and Labradorians

Amendments to the Pharmaceutical Services Act have been given Royal Assent and the regulations published in the Newfoundland and Labrador Gazette. A key component of the amended act will ensure that the residents of Newfoundland and Labrador benefit from lower generic drug costs. Savings from the lower generic drug costs will directly benefit residents who pay for their medications out-of-pocket and employers and employees who pay through private drug benefit plans. In addition, the Provincial Government will realize savings through the Newfoundland and Labrador Prescription Drug Program. A portion of these savings will be reinvested to protect seniors and support pharmacies.

“I am pleased that this important piece of legislation has passed with overwhelming support and that the people of our province will benefit from our new generic drug pricing policy,” said the Honourable Susan Sullivan, Minister of Health and Community Services. “We feel that the residents of this province deserve to pay reasonable prices for generic drugs and we remain committed to implementing this important policy.”

Following further discussions with generic drug manufacturers, the Provincial Government has learned that the April 1, 2012 implementation date, as originally planned, is not feasible for some companies. These companies have indicated they will not be able to meet the deadline for providing the required documentation to the Provincial Government. Without this documentation, there is no guarantee that pharmacies will charge the lowest price for pharmaceuticals through the Newfoundland and Labrador Interchangeable Drug Formulary, meaning residents could pay more for their medication. As a result the new policy will come into effect on April 16, 2012.

“Due to circumstances outside of our control we have had to extend our implementation date of our generic drug pricing policy,” said Minister Sullivan. “Our main goal was to begin providing lower cost generic drugs to all residents as soon as possible and it is very disappointing that the generic manufacturers are not able to meet the original implementation date. We are fully committed to this legislation and policy change. We want Newfoundlanders and Labradorians to receive the same benefit other Canadians currently enjoy.”

The Provincial Government continues work towards a long-term agreement with the Pharmacists' Association of Newfoundland and Labrador and is pleased with the progress to date. A portion of the savings from the new generic drug pricing policy, through this new agreement, will provide areas for reinvestment in pharmacies operating in underserviced areas of the province, support to pharmacists as well as ensure seniors who avail of the 65Plus Plan of the Newfoundland and Labrador Prescription Drug Program will not pay more for their prescriptions.

“The amendments to the Pharmaceutical Services Act will create a positive impact for everyone in our province,” said Minister Sullivan. “Full implementation of this policy remains our government’s focus and we will work through this slight delay in implementation for the good of our residents.”

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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 30             3:35 p.m.