When you compare Canadian prescription medication prices with others, there is a great difference. Superseding great opposition from pharmaceutical companies, the Canadian government declared final regulations to decrease drug prices. The decree will save Canadians an estimated sum of $13.2 billion over ten years. Since 1987, this has been the largest reform to Canada’s drug price regime. It does not only save money for the government, but also insurers, patients, and employees but all at the expense of drug companies’ revenue.
The regulation was called ‘’a crucial step to lower prescription drug costs for all Canadians’’ by the Canadian Life and Health Insurance Association. Drug expenditure has accounted for the growth in capital expenditure in the Canadian health care system in recent years with overheads growing faster than any other sector of health. Surpassing spending on physician remuneration, expenditure on drugs has become the second-largest cost in the Canadian healthcare system. The chief causes of these increase are:
- The adoption and use of newer and more expensive prescription drugs; and
- Increase in the general use of prescription drugs
Under the new rules, the Patented Medical Price Review Board (PMPRB) will compare medication prices in Canada with that of the US and Switzerland where prices are very high. Consider online Canadian pharmacies such as PricePro Pharmacy when comparing drug prices. It will also enable the agency to consider the cost-effectiveness of new medicines. Drug makers will be forced to disclose some private discounts to the PMPRB which will help them in setting maximum prices for prescribed drugs.
The new regulations consider account cost-effectiveness of medicines and their consequences on government budgets. The rules will apply only to drugs approved by Health Canada after the rules are officially published. Prices of some drugs already on the market could be affected by the changes in the list of comparison countries. Canada didn’t go bargaining with drug manufacturers to beat down their prices because the PMPRB felt that some prices are illegal.
Sometimes, disagreements ensue between PMPRB and drug makers which can be resolved at an internal tribunal, and few times appeals are sent to federal court and even beyond. The new guidelines are very much likely to spawn new court cases. There are also price caps after a drug appears on the Canadian drug market. The price charged each succeeding year can only be allowed to rise with the rate of inflation.
A recent study projected that the whole of Canada’s drug supply would be exhausted in 183 days if only 20% of prescriptions from the U.S were filled using the Canadian prescription medication price sources. Reducing profitability will have some consequences. Fewer dollars will be invested by manufacturers in research and development and focus will be shifted from very high-cost biological drugs to more rationally priced drugs for more prevalent diseases. The system will affect some positively and others adversely.
The policy process isn’t over until it is finally over. Private insurers and drug manufacturers who stand to lose more from the program are significantly threatened to lose interest in the industry. Citizens are also concerned about a possible tax increase even if the policy increases their net savings.
If you are looking for trusted online Canadian pharmacies for purchasing medications then pricepropharmacy.com is one of those you can consider.