Province will ensure drug prices go down: health minister

Deb Matthews, the province's health and long-term care minister, recently spoke via teleconference with journalists whose newspapers belong to the Ontario Community Newspaper Association about reforms to the province's prescription drug system.

The government wants to lower the cost of generic drugs to 25 per cent of the cost of brand name drugs by 2014.

They plan to do this by eliminating the payouts generic drug companies give to pharmacists (called professional allowances) in exchange for dispensing their products.

Matthews was asked by one report why the province wasn't going after brand name drug companies, given that the majority of the money spent on drugs in Ontario goes to brand name companies.

She said the province already negotiates “very toughly” with brand name companies, and it's time to get the price of generic drugs down.

Matthews was also asked how she would ensure the price of generic drugs would go down to 25 per cent of their brand name counterparts. She said the province will ensure the prices will be reduced.

“We're not just hoping they will go down. They will go down to the 25 per cent of the cost of brand (name drugs). We currently pay 50 per cent of the cost of brand (name drugs) for the drugs covered under the Ontario Drug Benefit Plan.”

For more on this story, look to a future issue of Northern Life.