BC Ready for Showdown on Generic Drugs

NDP critic says government should work to control costs on all prescriptions.

By Andrew MacLeod, 15 Apr 2010, TheTyee.ca

kevinfalcon

Health Minister Kevin Falcon ready to take on pharmacies.

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In Ontario the pharmacies in the health minister's constituency are cutting their hours as a battle over drug pricing turns personal. In British Columbia, Health Minister Kevin Falcon says he's ready to have the same kind of fight here.

"We think Ontario's going down the right road in terms of recognizing there are significant payments being made to pharmacies to stock drugs," said Falcon. "Ultimately that's being paid for by taxpayers through government purchasing."

The Ontario government, under the leadership of Health Minister Deb Matthews, announced last week it will try to save money on generic drugs. When the patent expires on a brand name drug, other companies can produce and sell a generic version of the same chemical. Ontario has been paying 50 per cent of the brand name price for generics, but wants to reduce that amount to 25 per cent.

Pharmacies, which would see their dispensing fees cut as a result, have hit back despite Matthews' warning earlier this week not to hold patients "hostage."

Shoppers Drug Mart cut hours and introduced delivery fees at its London, Ontario stores, which happen to be in Minister Matthews' constituency. Another chain, Rexall, announced a hiring freeze at its corporate head office and said it will eliminate pharmacy student and intern programs. It will also introduce delivery fees across the province.

Asked about the steps Ontario pharmacies are taking, Falcon said, "I think it shows you how high the stakes are. They're going to play rough."

Savings expected: Falcon

In 2008, B.C.'s Pharmaceutical Task Force recommended the province work on reducing the amount of money the province spends on generic drugs.

At the time the panel's vice-chair, George Morfitt, told the Tyee the main problem appeared to be with the rebates generic companies give to pharmacies to provide one drug instead of another. "Nobody's quite sure how much money is going to whom and for what," he said.

"We're in negotiations now with the B.C. Pharmacy Association," Falcon said this week. "We've let them know we expect to see significant savings here in British Columbia too."

He said he believes the pricing of generics in B.C. is similar to in Ontario, with the generic selling for about 50 per cent of the price of the brand name drug. He declined to say what the government is seeking in its negotiation with the pharmacies.

"I'm not going to disclose what our strategy is," he said. "We have made it clear we expect to repatriate some of those dollars back to the benefit of the government and the taxpayers."

Minister's drug ideas inconsistent: NDP

Citing the ongoing negotiations, a spokesperson for the B.C. Pharmacy Association said nobody would be available for an interview, though he did provide an emailed statement from CEO Marnie Mitchell.

"We have been in talks with the provincial government for several months, with the aim of working collaboratively to ensure pharmacists are fairly reimbursed for their services," she said. "We believe the best way to achieve this is to negotiate in confidence with government, in an atmosphere of trust and freedom, exploring all options available. Our priority remains to achieve the best outcome for B.C. pharmacists and for their patients."

It's ironic that Minister Falcon has said he hopes to save money on generic drugs considering how much sway the brand name drug companies have had in setting provincial drug policy, said New Democratic Party health critic Adrian Dix.

"Its a good thing to look for savings everywhere and make sure prescribing patterns are the best," he said. Although health care costs have risen steadily "the main cost driver hasn't been the generics," he said. "Let's go after everyone, not just one part of the marketplace."

If Falcon were serious about reducing drug costs, Dix said, he would have the ministry keep seeking the advice of UBC's Therapeutics Initiative and would expand reference-based pricing, a program where the government will pay for the least expensive among drugs that do the same thing.

"We are not on the cutting edge of pharmaceutical policy anymore unfortunately because they've taken the retrograde step of going after the very evidence-based programs that will restrain the costs and ensure prescribing is done properly," he said.

Despite Falcon's tough talk, Dix said he fears the government will continue protecting the big pharmaceutical companies and allow the overall amount spent on prescription drugs to grow. [Tyee]

Andrew MacLeod is The Tyee’s Legislative Bureau Chief in Victoria. Reach him here.

31 Comments:

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  • DenisB

    2 years ago

    smoke and mirrors

    just the Libs deflecting people from realizing the true nature of what they're doing. Drug spending is going to go through the roof; however, they'll be able to say that they're doing everything possible to keep them down. Just look at how we're pressuring the "generic" drugs.

  • cocean

    2 years ago

    Examine Drug-Dispensing Alternatives

    Perhaps we should think beyond our current drug-dispensing structure. If pharmacists are taking kickbacks and won't disclose what they are and given that drug-dispensing fees vary from pharmacy to pharmacy, then we should look to alternative ways for people to access prescription drugs. Currently, drug-dispensing is a business industry, which in turn supports Big Pharma. Is there a public alternative for drug-dispensing that's worth looking at?

  • alive

    2 years ago

    right

    My hardware store sells nuts and bolts without a dispensing fee

  • Van Isle

    2 years ago

    Hospitals have pharmacies.

    Hospitals have pharmacies. I don't think they charge a dispensing fee to their patients, do they? On top of it they have qualified people who administer the pills/drugs to their patients too.

  • Ramona777

    2 years ago

    Pharmacists Are Overpaid

    Shoppers Drug Mart stock continues to rise and you don't often see drug stores going belly up.
    Pharmacists are greedy. They do have degrees and do deserve a fair wage but someone has to put a cap on their excessive dispensing fees.
    Add to that the cloak of secrecy that drug companies wrap themselves in and it's no wonder our health care costs are uncontrollable.
    A few weeks ago a study said some seniors are taking up to 15 prescriptions. We are literally and figuratively a sick society. Think of the cost. And does one drug cancel the other? How do people let themselves get to such a state that they need that many drugs or is it a health care system that takes advantage of the sick?

  • alive

    2 years ago

    Pill-pushers

    Ramona777
    good points!
    I had a verbal fight with my GP because I questioned why I was prescribed a drug to combat the side effects of another drug.
    By being stubborn we gradually cut out both drugs and test revealed that I am better off now.

    Most people have more than one doctor, and no doctor wants to cancel a prescription that another doctor or specialist has issued!

    It is all about not being liable!

  • Takuan

    2 years ago

    legalize marijuana

    and half these expensive precriptions will go away.
    I'm not kidding. At least half of the drugs prescribed are so the patient can feel the doctor is "doing something". The doctors know it, the drug companies know it, the dealer-gangs know it, the cops even know it and the politicians on the take to keep it illegal know it.

  • Bob Watts

    2 years ago

    Copy Cat Drugs

    I take 24 types of drugs per day and many generic drugs are just not the same!
    Because I get blister packs every 4 weeks there are 24 X $9.50 = $228.00 in professional fees per mth, profits are also made on the drugs themselfs.
    Here is a good example. I take water pills for high blood pressure drug cost about .80 cents per mth plus $9.50 in fees, the local drug store would only fill the r/x by the mth.
    I went to a large Overwaitea and they sold me a years supply for a total price of $19.10
    The local drug store wanted $229.20 for the same one item

  • SharingIsGood

    2 years ago

    Like DennisB - smoke and mirros

    BC Liberal policies are generally smoke and mirrors. Big pharmaceutical had donated $170,000 to the libs by December of last year. I can't think they did that so the BC Libs would beat up on them. This government has always been in the back pocket of Big, often multinational, business and the already wealthy. The balance sheet shows that BC Liberal policies resoundingly favour Big Business and the already wealthy over the average British Columbian. I can't believe it, but I'm actually going to post a link to a Baldry article.

    http://www2.canada.com/abbotsfordtimes/news/opinion/story.html?id=ea6a68ac-ee28-49c1-b724-182825be5b4f

  • DenisB

    2 years ago

    It will be interesting to

    It will be interesting to see how many Liberals end up as directors of Pharmacuetical companies after they leave politics. Remember [POTENTIALLY DEFAMATORY COMMENT EDITED. -MODERATOR.]

  • Iwannajob

    2 years ago

    What savings?

    I understand that the T.I. is a low-cost program with tremendous results saving the province millions and saving lives. So why is the government cutting this program? I think that is rather obvious! But for such a low cost ( $1,000,000 or so ) maybe the College of Physicians and Surgeons should step up to the plate and cover the cost until this government is embarrassed back into reality. It is a drop in the bucket to the college and would show the province that our physicians are on the side of ethical and fair treatment of their patients. Maybe the nurses union could jump on this bandwagon with the doctors, spread the costs around and shame this foolish Liberal government right out of office!

  • greengreen

    2 years ago

    April 1?

    Tony Clement is going after the big, bad oil companies and Kevin Falcon is going after the big, bad drug companies. C'mon lads, April Fools DAy was over a couple of weeks ago.
    Mr. Dobbin, Mr. Gutstein, Mr. Tielman...please connect the dots

  • nonny moose

    2 years ago

    go to a homeopath or naturopath

    I fear doctors are influenced by Big Pharma and overprescribe pills that they don't know much about - after all they're busy, can't do the research - so 90% of doctors take the pharma salesman's word for it.
    Taking more pills to fight the side effects of the previous pills, just piles insult on injury.

    the benefit of homeopathy, and naturopathic medicine is that herbs and the highly diluted homeopathics while effective are usually totally harnmless. And they actually cure the sickness rather than just masking symptoms.

    Not to mention that they cost a lot less.

  • RickW

    2 years ago

    Ontario Has Not Been A Sterling Example of Saving Money of Late

    No wonder Kevin Falcon wants to emulate that province.

    As an aside, I wonder how many Big Pharma companies have interests in generic drug companies?

    Takuan: Excellent point!

  • Takuan

    2 years ago

    placebos are placebos

    some work anyway. That doesn't mean I approve of the idiocy called "homeopathy".

    Doctor Takuan's Prescription For Saving Billions in Health Costs:

    Feel ill? Before you see your doctor or buy any drugs:
    1. What are you eating? Are you fat? Too damn skinny? Stop eating garbage! And stop eating so damned much. THINK before you put it in your mouth. No excuses! The information on what food is healthy and what is not is free and available to all.
    2. Do you smoke tobacco? Yes? Well, stop then, how dare you waste the time of medical professionals and our public money too! I quit, so can you. Stand up straight when I'm talking to you damn it!
    3. Do you use booze and recreational drugs to excess? See above.
    4. Do you move your body? Well, exercise then! Are you stupid?!! Do you really believe taking a bloody pill is a substitute for physical activity, something arrived at after millions of years of evolution?
    5. Worried all the time? Then DO something about it! Even if it's just raving on public bulletin boards.

    If after following these five basic steps and you find you still feel ill: see your doctor.

    Glad to be of service, and those who think they may be in need of psycholgical counseling can see me after hours for private abuse.

  • Ramona777

    2 years ago

    Well Said Takuan

    Too bad people are either too lazy or ill-informed to take your advice.

  • Takuan

    2 years ago

    nah

    they're just people.

  • Ramona777

    2 years ago

    Takuan

    Well, why wouldn't they take your sage advice?

  • Takuan

    2 years ago

    I'm

    too polite?

  • Ramona777

    2 years ago

    Point Taken

    But that's why we're in the health trouble that we're in. Doctors, health professionals, even loved ones, are too polite with those that continue to abuse their own health.
    I remember my aboriginal father telling me that some people will smile while they stick a knife in your back.

  • Bob Watts

    2 years ago

    Smokers are good for the BC Health Plan.

    Both my parents died due to smoking, and they both died rather fast.
    So why is smoking good for BC, answer lots of taxes paid!
    Smokes are what $9 per pack, the tax is about $7.
    Now $7 X 365 days = $2,555 per year.
    Now $2,555 X 45 years = $114,975
    Everyone dies, but the average smoker paid an extra $114,975 in today’s dollars.
    So both my parents smoked for 55 years each, meaning they paid an extra $281,050.00 in taxes, that the non-smoking couple next door never paid!
    Now if we taxed Pot in just BC, we could end our deficit. Of course we’d be invaded by the Christian’s from the South. We just can’t win, LOL…

  • RickW

    2 years ago

    Takuan

    Mineral Deficiencies And Food Cravings
    http://diabetesinfocenter.org/PrintArticle.aspx?ArticleID=819
    It's not ALL willpower, ya know.

  • Takuan

    2 years ago

    if you keep making excuses for them

    how am I supposed to keep yelling at them?

  • Takuan

    2 years ago

    and don't let any of this distract from the fact that the only

    [OFFENSIVE COMMENT REMOVED. -MODERATOR.]

  • mary jane

    2 years ago

    $$ needed

    There are other ways to collect funds. I agree selling pot out of liqours stores would help and leave the non pot smokers to eat - get an education - etc Like booze it can be regulated I don't like booze or pot but I do like to eat

  • RickW

    2 years ago

    [REFERENCE TO PREVIOUS OFFENSIVE COMMENT REMOVED. -MODERATOR.]

    Seems that can be extended to include virtually all politicians......

    Perhaps, in the case of said politicians, they can be held to a different standard than we peons -- "guilty until proven so".

  • Takuan

    2 years ago

    well,

    then at least demand they all be tested for drugs (and booze) every day they are on the job

  • Takuan

    2 years ago

    some good news anyway:

    http://www.guardian.co.uk/commentisfree/2010/apr/18/nick-cohen-simon-singh-libel

  • Iconoclast

    2 years ago

    More tired rhetoric and finger pointing!

    Another pathetic knee jerk reaction to blow smoke.
    If the Federal and Provincial governments were sincere about resolving this issue they would have implemented a national drug strategy years ago, which among other things would address catastrophic prescription drug costs.
    The current government could also stop discriminating against single people who have to pay higher health care premiums than families.
    No accountability = No change
    Based on past experience any attention to current issues is just another overpriced photo op.

  • RickW

    2 years ago

    Iconoclast

    Quote:
    If the Federal and Provincial governments were sincere about resolving this issue they would have implemented a national drug strategy years ago

    I wonder how much Big Pharma "donates" to political parties, both in Canada and the US.....

    Also, I wonder how many ex-politicos manage to find their way to the boardrooms of Big Pharma......

  • 132ssway

    2 years ago

    The cost of mfg a drug is

    The cost of mfg a drug is lass than 10$ of the retail price of a patented drug. When the patent comes off, a fair, competitive price of a generic pharmaceutical, which then becomes simply a manufactured good, should be no more than about 30% of the patented compound reatil price. Anything over and above that is, simply, theft, or, more elegantly, corporate level corruption.

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