Promised legislation to control the cost of generic drugs in British Columbia should cover all payers, not just the government, said Pacific Blue Cross CEO Ken Martin.

"We'd like to see the legislation continue to apply to private payers," said Martin. "I'll be surprised if it isn't. I'm still at the hopeful stage."

A 2010 B.C. agreement with organizations representing pharmacies dropped the price of generics to 35 percent of the cost of brand name drugs they replace as of today. Health Minister Michael de Jong recently announced the agreement hasn't saved enough money and the government will bring in legislation this session like Ontario's to reduce the price of generics to 25 percent of the brand name prices.

Martin said his organization is supportive of the legislation and would like to see it also cover dispensing fees and mark-ups, which can vary greatly between pharmacies. While people see dispensing fees printed on their pharmacy bill, they have no idea how much mark-up they're paying on drugs, he said.

The government sets what it will pay through PharmaCare for dispensing fees and mark-ups, but fails to do the same for payers like Blue Cross or for individuals who buy their own drugs. Martin said he sent a letter to then Health Minister Kevin Falcon encouraging him to include them in the agreement with the B.C. Pharmacy Association and the Canadian Association of Chain Drug Stores, but the government chose not to.

"When somebody needs drugs, they should be able to afford them," said Martin, noting the price of prescriptions has gone up faster than the rate of inflation in recent years. "It's important to try to contain it and it's succeeded in other provinces on the generic side."

Pacific Blue Cross provides drug plans to about a third of the population of the province through their employers, he said. About two-thirds of the cost of plans is for drugs, he said.

Andrew MacLeod is The Tyee’s Legislative Bureau Chief in Victoria. Find him on Twitter or reach him here.