Some Positive Developments for New Brunswick Pharmacists but New Generic Prices Still Causing Problems

The New Brunswick government has provided pharmacists in the province with a measure of optimism about future levels of compensation, but in the short term, they continue to feel the pinch from lower generic pricing. The province announced in March that generic drug prices would decline to 40% of the brand-name price on June 1, 2012, and to 35% on December 1. While Health Minister Madeleine Dube did announce a reinvestment of some of the government's savings into pharmacy services, the New Brunswick Pharmacists' Association (NBPA) said the additional revenues would not adequately offset pharmacy's losses. The NBPA rolled out a public relations campaign against the new generic policy, which included full-page newspaper ads and letters to the editor. On May 25, Dube announced the first price decrease would be delayed until June 11, to give pharmacies an extra 10 days to reduce inventory purchased at lower prices. The government has also accepted the association's request to negotiate a formal compensation agreement—something New Brunswick pharmacists haven't had since 1995. In addition, pharmacy and the province will form a pharmacy affairs working group, tasked with monitoring savings from the new generic policy in the first year and developing frameworks for additional professional services. While the NBPA welcomes the commitment to a formal agreement and creation of the working group, it continues to have concerns, according to executive director Paul Blanchard. The slightly longer “washout” period for clearing old inventory isn't going to make much difference, he says. “Our members generally carry at least 60 days of inventory,” says Mr. Blanchard. “We were asking for a 30-day washout period, as several other provinces had negotiated. While 10 days is certainly better than nothing, it's inadequate and members are frustrated with that.” The government has agreed to begin negotiations on an agreement, but the process won't start until the summer of 2013, with the goal of finalizing terms by the end of that year. “We're struggling with the fact that we will have to wait a year before those negotiations can even begin,” the executive director says. “Our understanding is that the government wants to wait to have a sense of whether the policy is generating the savings they hope for.” “Our concern is that all of the risk is being absorbed by pharmacists,” he adds. “We're getting lower prices without the benefit of a new agreement. While there is an increase in our dispensing fees, it falls far short of what other provinces are getting.” Nova Scotia's fee, for example, has risen to $11.65, while the fee in New Brunswick has been raised to $10.40 per prescription. The NBPA is encouraged by the commitment to form the government-pharmacy working group, as it presents opportunities for establishing new reimbursed services, consistent with pharmacists' expanded scope of practice. “We'd like to see services such as immunization and minorailments prescribing dealt with through this group,” Mr. Blanchard says.

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