Announcement

Collapse
No announcement yet.

McGuinty gearing up to take on pharmacies over generic-drugs pricing

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    McGuinty gearing up to take on pharmacies over generic-drugs pricing

    When I first saw the headline, I though what the is he doing. The one's making all the money are the drug companies not the pharmacies, there just distributors.

    Then I started reading the story and I am found it hard to follow, I do not know if it is the way that it is written or if the industry is so mixed up.

    I do know how ever that it is something that affects every one here even if your not in Ontario cause if one province does it, it is usually copied later on in another province. It is worth keeping an eye on it.

    Read about it here
    Woody

    #2
    Hello Woody. This has been a long on going problem. Stripped of everything else it comes down to the rebates. The following is a very rough example.

    As you know somebody on assistance or over 65 has to take a generic drug rather than a name brand in most cases. The gov't pays the pharmacies its dispensing fee etc based on the amount of the drug cost(up to 20%). So if you have a generic drug costing $7 the pharmacy isn't going to be to wild at making $1.40 in dispensing fee on a welfare acct.

    So roughly what happened is the generic drug companies raise the price of that $7 drug to $10 and then gives the pharmacy a $3 rebate plus the gov't now pays a $2 dispensing fee to the pharmacy.

    So the proper cost to the Govt should be 7+1.40= $8.40 instead it is 10+2=$12 and the pharmacy makes an extra $3.60 Everybody else loses as this method also keeps the price of generics up for everybody

    In Ontario there are a lot of subsidized drug plans. Everybody 65 and over gets free meds, All low income families are eligible for free or partially free meds. The pharmicists are saying they cannot afford to accept $2 dispensing fees. I don't know at this point who is right. I do know the Government created this mess and allowed it to happen. Take Care. paul m
    "Alone we can do so little;
    Together we can do so much"
    Helen Keller

    Comment


      #3
      Deep into the murk

      Here is a follow up article on the same subject. Kind of puts a different spin or explanation on what the government wants to accomplish.

      I am not sure if I am reading my slips right but here are two examples
      1 - [ T:46.15 F:11.99 C:34.16 ]
      2 - [ T:220.52 F:7.00 C:213.52 ]

      1 is a Brand name Pharmacy and 2 is not affiliated with any chain.
      In both cases I pay the same F value on every prescription that it cost 220.52 or 1.71
      I do not have private insurance for my drugs and I have to rely on Trillium to cover the cost of my medication. Not sure if that make a difference.

      Woody

      Comment


        #4
        Hello Woody. The federal gov't sets the price of brand name drugs, but does not regulate generic prices.

        In Ontario the govt provides roughly 2.2 million people with drugs. The cost for this is estimated at 3.5 Billion dollars this yr.

        This gives the province enormous leverage when it comes down to pricing and how much the province will pay for dispensing fees.

        The gov't pays the same to a no name pharmacy as it does to a chain. In Ontario you will find almost all meds are the same price no matter which store they are bought at , although the dispensing fee may be different if you have a private plan.

        I know this is still all clear as mud. Thats because there is 3.5 billion at stake and everybody wants a chunk and the gov't wants to save money, so each side is blaming the other. It's a problem that coming up all over the country. A good article that expalins the country problem and some of the provincial ones is found at http://www.cmaj.ca/cgi/content/full/181/5/E80 . If you can read the whole thing it does make it a bit clearer. Take Care. paul m
        "Alone we can do so little;
        Together we can do so much"
        Helen Keller

        Comment


          #5
          Think I got it ... thanks
          Woody

          Comment


            #6
            Hello Woody. If you got it, you may be the only person in the country. I had said that I knew what was going on,not that I understood it all . Of course when your dealing with anything starting with a billion, a few lies and inaccuracies may creep in .

            Think of it this way, big pharma companies, big drug store companies and the government are all fighting over who will provide for you best. All those that think we will come out ahead raise your hand. Take Care. paul m
            "Alone we can do so little;
            Together we can do so much"
            Helen Keller

            Comment


              #7
              OK maybe I should have underlined Think
              Woody

              Comment


                #8
                Pharmacies fear funding cuts loom

                This is potentially related. There is a story in the London Free Press regarding potential cuts to funding could deeply affect the level of service that we now enjoy. Read more here.
                Woody

                Comment


                  #9
                  Hello Woody. Thx, it's a sad storey. I was reading in the star today where health costs now eat up 43% of the budget and the gov't is studing ways of cutting this back including cuts to hospital services.

                  Where is all this money going. They have been cutting services for 15+yrs and yet the amount spent keeps growing. Take Care. paul m
                  "Alone we can do so little;
                  Together we can do so much"
                  Helen Keller

                  Comment


                    #10
                    The hole sector is out of control. All you need to do is to look at some of the salaries that are being paid out and the cost of medications.

                    One of the problems is that you have one region of the country playing off the other region of the country and the only thing that is happening is that the cost are going up.

                    Other problem, the government needs to be taking out of the equation and the system need to be at arms length of both federal and provincial governments.
                    Woody

                    Comment


                      #11
                      Woody I have to agree with you. I think that part of the solution would be an arm's length crown corporation. Not perfect but better than now. I know the new system of LHIN's we have in Ontario is not working well in most area's.

                      The 14 LHIN's (local health intergrated networks) in Ontario control about 70% of the health care budget. Each LHIN has a gov't appointed 9 person board.

                      So we know have 126 political appointees trying to spend 30+ billion dollars arcross 14 divisions in Ontario. Problems. The board in our area has constant openings(currently 3 of the 9) . A cynic would say there are problems. Ok, I'll take my soapbox and move along now. Take Care. paul m
                      "Alone we can do so little;
                      Together we can do so much"
                      Helen Keller

                      Comment


                        #12
                        Crown Corp would do the trick!
                        Woody

                        Comment


                          #13
                          Hello Woody. Perhaps things do change for the better sometimes. I never thought 25-30 yrs ago that I would say a crown corporation would be better for anything.

                          Or has everything else just got that much worse Take Care. paul m
                          "Alone we can do so little;
                          Together we can do so much"
                          Helen Keller

                          Comment


                            #14
                            I think that we just do not hear so much about crown corp anymore. No where near the level during the free trade debates and who was it again that wanted to sell them all off?
                            Woody

                            Comment


                              #15
                              Hello Woody. I don't understand selloffs at all. The Provincial Gov't wants to sell off the liquor store. Who in their right mind would get rid of a liquor store. Talk about a license to print money.

                              Besides if a crown corp doesn't make money nobody wants to buy it, so we only sell the profitable ones. I don't have an MBA, but even I can figure out that stradegy is a loser. (whew, I almost had to haul out the soapbox) Take Care. paul m
                              "Alone we can do so little;
                              Together we can do so much"
                              Helen Keller

                              Comment

                              Working...
                              X