Canadian Provincial Drug Reform Overview

Drug reform has swept across Canada with 5 provinces making changes in 2010 and 2011 to the way generic drugs are regulated in Ontario, Alberta, British Columbia, Quebec and Nova Scotia.  The following highlights the key changes to provincial drug regulation:
 
Ontario
 
Effective Date:
 
July, 2010
 
Generic Pricing:
 
Public: 25% as of July 1, 2010
 
Private: 50% as of July 1, 2010, 35% as of July 1, 2011, 25% as of July 1, 2012
 
Rebating
 
Eliminated
 
Agreement
 
Negotiated with pharmacy
 
Drugs Included
 
ODB Formulary
 
Not Regulated For Private Sector
 
Pharmacy mark-up, dispensing fees, generic drugs not on ODB formulary
 
Alberta
 
Effective Date:
 
April 1, 2010
 
Generic Pricing:
 
Public and Private:
 
New generics: 45%
 
Existing generics: 56%
 
Transitional allowances to mitigate impact for the first 3 years
 
Rebating
 
No restrictions
 
Agreement
 
Negotiated with pharmacy
 
Drugs Included
 
AB Formulary
 
Not Regulated For Private Sector
 
Pharmacy mark-up, dispensing fees, generic drugs not on AB formulary
 
British Columbia
 
Effective Date:
 
July 28, 2010
 
Generic Pricing:
 
Public and Private:
 
New generics: 42% as of July 28, 2010, 40% as of July 2011, 35% as of April 2012
 
Existing generics: 50% as of October 1, 2010, 40% as of July 4, 2011, 36% as of April 2, 2012
 
Rebating
 
No restrictions
 
Agreement
 
Negotiated with pharmacy
 
Drugs Included
 
BC Formulary
 
Not Regulated For Private Sector
 
Pharmacy mark-up, dispensing fees, generic drugs not on BC formulary
 
Quebec
 
Effective Date:
 
November 8, 2010
 
Generic Pricing:
 
Legislation states: "Best Available Price"
 
November 2010: Greater of 37.5% of the brand or the best price in Canada
 
April 2011: Greater of 30% of brand or the best price in Canada
 
April 2012: Best price in Canada
 
Rebating
 
TBD
 
Agreement
 
Pharmacy practice
 
Drugs Included
 
TBD
 
Not Regulated For Private Sector
 
AQPP determines mark-up on behalf of Quebec pharmacies
 
Nova Scotia
 
Effective Date:
 
Summer 2011
 
Generic Pricing:
 
TBD
 
Rebating
 
TBD
 
Agreement
 
TBD
 
Drugs Included
 
TBD
 
Not Regulated For Private Sector
 
TBD

Category: Legislative Updates