Canada's Ontario slashes generic drug prices, 'expanding access to affordable medicines'

The Canadian Province of Ontario plans to further reform the prescription drug system to provide better access to lower-cost generic drugs for patients, while continuing to increase annual funding to the drug system as a whole.

In doing so, the province verified that it was ending "for good" the sometimes-excessive discounts that drugstores receive from the manufacturers of generic pharmaceuticals, labeling the payments equivalent to rewards.

The proposed changes announced include:

' Lowering the cost of generic drugs by at least 50%, to 25% of the cost of the original brand name drug for Ontario's public drug system, private employer drug plans and people who pay for drugs out-of-pocket, saving taxpayers millions;
' Eliminating abuse of the system by ending so-called 'professional allowances' - payments generic drug companies make to pharmacy owners intended to fund patient services, but are instead being used by many pharmacies as rebates to fund fringe benefits, bonuses, overhead costs and boost profits;
' Ensuring pharmacists are fairly compensated for helping patients by increasing dispensing fees and paying for additional services provided to patients; and
' Supporting access to pharmacy services in rural communities and under-serviced areas with new dedicated funding