EDMONTON – Health Minister Fred Horne has announced that pharmacists will get a month-long reprieve before the province lowers the price on generic drugs.
“Cheaper generic drugs benefit Albertans, but I understand pharmacy challenges. So I’m providing a 30-day wash-out period,” Horne said Thursday via Twitter. “(Government) to pay higher generics price til May 30 so pharmas can adapt to lower prices. Considering more transition supports.”
The province’s plan to reduce the price paid for generic drugs to 18-per-cent of brand name rates from 35 per cent has raised the ire of pharmacists, who say the move will cut off a major supply of their revenue.
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Many pharmacists make money by arranging special volume deals when they buy drugs from suppliers. Essentially, if they buy enough product, the suppliers will send them back money worth 40 to 50 per cent of their purchase.
But now that the government has dropped the drug prices, such suppliers can’t afford to offer the same volume deals, pharmacists say. They say that loss of income will ultimately hurt patients, as pharmacies will be forced to close, lay off staff or reduce hours.
About 300 pharmacists and pharmacy students held a demonstration at the legislature last week to bring attention to the issue,
Horne has said lowering prices, which has been done in many other jurisdictions, will save the province $90 million and lower costs for consumers.
He said that while some pharmacies may lose one source of income, they are being compensated because the province recently gave them the ability to charge for additional “professional services,” such as giving injections, renewing prescriptions and helping to put together a care plan.
The new drug pricing was set to be fully implemented as of May 1, but will now be delayed to the end of that month. It’s unclear if the move will be enough to satisfy pharmacists.
Horne has been holding meetings with the Pharmacists Association of Alberta over the past week.
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