Nova Scotia Government Implements Final Phase of Generic Price Reductions

The price of most generic drugs under Nova Scotia's Pharmacare Programs is now capped at 35% of the brand price, after the province implemented the final phase of its “Fair Drug Prices Plan” on August 1, 2012. The first generic pricing reduction to 45% came on July 1, 2011, followed by a second reduction to 40% on January 1 of this year. Nova Scotians covered by private plans or paying for their own prescriptions will pay the same price as those covered by Pharmacare. The Nova Scotia Ministry of Health and Wellness is on track to reduce drug spending by $7 million a year, according to a July 26 news release. “Before bringing in fair drug prices, spending on prescription drugs had almost doubled in the past 8 years. We needed to keep this spending in check,” said the minister, David Wilson, in the release. Meanwhile, pharmacists in the province continue to experience pressures from the price reductions that began a year ago, says Allison Bodnar, executive director of the Pharmacy Association of Nova Scotia (PANS) — pressures that will intensify as the final phase of the government's plan takes effect. “There are some large-volume molecules that hadn't previously declined in price that are taking a big drop this time,” she says. These include omeprazole, used to treat peptic ulcers. “Things are just getting tighter and tighter for pharmacies,” adds Ms. Bodnar. “We are seeing the effects of the policy; there have been a couple of pharmacy closures in Nova Scotia and there have been reduced hours. We are seeing an oversupply of pharmacists now.” Last year, PANS and the provincial government signed a new tariff agreement covering services to Pharmacare recipients. The agreement — which runs until 2014 — did provide a small increase in dispensing fees, as well as new funding for medication reviews, prescription adaptation and therapeutic substitution. The association, however, says the additional compensation isn't enough to offset the losses to pharmacy revenue from the generic price cuts. Pharmacists are currently waiting for the government to unveil regulatory authority — and an associated funding formula — for pharmacists to administer injections. Meanwhile, says Ms. Bodnar, many pharmacists in the province are looking for ways to exercise their expanded scope of practice, even if the service isn't currently funded. “Patients are willing to pay for services such as prescribing for minor ailments,” she says. “The public is ready and people will pay for convenience. And by increasing awareness of the value, we expect that will increase the demand by the public on government to fund such services.”

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