Do you think it is fair that you should have to pay more for the same generic drugs compared to, say, someone in the United States or New Zealand?
I didn’t think so. Sadly, compared to some US states, we pay as much as five times more for some of the most popular generic drugs for diabetes, high blood pressure and other health conditions.
In what other industry do the manufacturers pay the retailers to sell their product? I can’t think of any. And where does that money come from? The manufacturer charges you for that because it gets rolled into the cost of the drug.
But that’s not going to be happening for much longer. Soon, Ontarians are going to be able to enjoy better prices for generic drugs because the McGuinty government is taking steps to improve Ontario’s drug system.
When the current system was introduced, the money that the manufacturers paid the pharmacies was supposed to go toward patient care. But based on reports from the pharmacies themselves, 70 percent of this money has actually gone toward fringe benefits, salaries, bonuses and overhead costs instead. And we aren’t talking chump change here. In 2009, generic drug manufacturers reported paying pharmacy owners more than $750 million.
Pharmacies claim that, because the government is eliminating this unaccountable payment, they will have to reduce services and that some pharmacies would even have to close their doors. They claim that people in rural areas would not be able to get their prescriptions filled.
But the truth is, under our new reforms, our government would pay pharmacies directly for providing a wider range of health care services. Our government is going to pay pharmacies in rural and under-serviced areas $4 more in dispensing fees to ensure that, if you live in these areas, you will still have access to your prescriptions.
Under our reforms, we are actually going to pay the pharmacies more in dispensing fees, while capping the amount of money that comes from the manufacturers.
As a result, generic drug prices will be cut in half. This would save the government over $500 million a year, which will be re-invested back into the health care system so that we can provide Ontarians even more services. It will also make drugs a lot more affordable for people who pay for medication out of their own pocket.
What do Ontario’s drug system improvements mean to you?
It means you’ll be paying a fair price for your generic drugs. And it means that the tax dollars you dedicate to health care will go even farther.
For more information on drug system reform, visit www.ontario.ca/fairdrugprices or contact my Constituency Office at 416-630-0080.