Executive Council
April 15, 2012
Tentative Agreement Reached with Pharmacists’ Association
A tentative four-year agreement with the Pharmacists' Association of Newfoundland and Labrador (PANL) has been reached. As a result, the Provincial Government will reinvest more than $37 million in pharmacies and $29 million in the 65Plus Plan of the Newfoundland and Labrador Prescription Drug Program, over the life of the contract.
“The tentative agreement we have reached with PANL and the new generic drug pricing policy will help ensure access to a strong health care system,” said the Honourable Susan Sullivan, Minister of Health and Community Services. “Our government recognized that there was an opportunity to help people, especially seniors who are burdened by growing drug costs. The new policy strikes a unique balance that demonstrates strong fiscal responsibility while making generic drugs more affordable for all Newfoundlanders and Labradorians. We look forward to continuing some of the dialogue that occurred during negotiations through ongoing working groups with PANL.”
Essential elements of the agreement with PANL include:
- Payment for professional services, such as reviews of a patient’s medication profile; and,
- Reinvestments in pharmacies operating in underserviced areas of the province.
Effective Monday, April 16, the Provincial Government is also moving forward with its commitment to protect seniors who avail of the 65Plus Plan. Through negotiations with PANL, an agreement has been reached that ensures seniors covered by the 65Plus Plan will pay no more than $6 per prescription. In addition, the 10 per cent surcharge on drugs that cost more than $30 has been eliminated. The 65Plus Plan provides coverage of eligible prescription drugs to residents 65 years of age and older who receive Old Age Security benefits and the Guaranteed Income Supplement.
“Our government committed to protecting our seniors, protecting our pharmacies and ensuring that the people of Newfoundland and Labrador pay reasonable prices for generic drugs,” said the Honourable Tom Marshall, Minister of Finance, President of Treasury Board and Minister Responsible for the Public Service Secretariat. “I am extremely pleased with the work that has been done by both negotiating parties on this important issue. This tentative agreement and the investments we are making will ensure that the residents of our province benefit and that our pharmacies continue to remain viable.”
In addition, starting on Monday, April 16, residents of Newfoundland and Labrador will benefit from lower generic drug costs as a result of the Provincial Government’s recent amendments to the Pharmaceutical Services Act.
The new pricing policy will be phased in between April 16, 2012 and April 1, 2013:
- From April 16, 2012 to September 30, 2012 all generic drugs, except for a small number that will be considered for exemption, will be priced at no more than 45 per cent of brand.
- From October 1, 2012 to March 31, 2013 all generic drugs, except for those approved for exemption, will be priced at no more than 40 per cent of brand.
- From April 1, 2013 onward, all generic drugs, except for those approved for exemption, will be priced at no more than 35 per cent of brand.
Once fully implemented, savings from lower generic drug costs will benefit residents who pay for their medications out-of-pocket and employers and employees who pay through private drug benefit plans.
Dispensing fees that pharmacies charge to third-party and self-pay clients are either set by the market or through contracts with private insurers, which the Provincial Government does not regulate. Having successfully completed negotiations with the Provincial Government, pharmacies across the province are now beginning to re-negotiate their agreements with third-party private insurers to recognize the new generic drug pricing policy.
The Provincial Government remains committed to ensuring a strong and responsive health care system. Through the savings realized from the new generic drug pricing policy, the Provincial Government will continue to invest in the people of Newfoundland and Labrador.
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Media contacts:
|
Jennifer Tulk Director of Communications Department of Health and Community Services 709-729-1377 jennifertulk@gov.nl.ca |
Roger Scaplen Director of Communications Public Service Secretariat 709-729-4839, 697-5267 rogerscaplen@gov.nl.ca |
2012 04 15 3:50 p.m.