Despite last week’s headlines, Quebecers should not be concerned about the lifting of the price freeze on prescription drugs announced by Health Minister Philippe Couillard. At least this is the opinion of Bertrand Bolduc, former president of BioQuébec, Quebec’s biotechnology industry association.
According to Bolduc, the difference on the bill will be small. The price control mechanisms and the market competition between the pharmaceutical companies are going to play a role in reducing the increase.
Within the next month, Quebec should announce a 3-year agreement with the pharmaceutical companies whereby the price of drugs listed in the Régie de l’assurance maladie’s formulary can be increased to the level of inflation. The increase will be absorbed by the public prescription drug insurance plan, under which 3.2 million Quebecers are covered.
For its part, the Quebec Association of Owner Pharmacists(AQPP)maintains that, because of the price freeze, which has been in effect since 1994, some products are no longer available in Quebec, although they are available elsewhere in Canada. According to the AQPP, if the price freeze policy is maintained, other products might become unavailable in Quebec.
The AQPP has also indicated that it is concerned that patients would be hit with increased drug prices if the pharmaceutical companies decide to implement a price hike greater than the rate of inflation. This means that if a manufacturer and the government fail to reach an agreement on the price increase for a given product, the manufacturer can implement a price hike just the same, but the difference between the rate of inflation and the manufacturer’s price increase would be passed on to the patient. Patients will certainly not be pleased with this.
Yves Dupré, executive director, for Quebec, of the Canadian Generic Pharmaceutical Association, deplores this decision, as it will inevitably lead to a price increase. “The government is talking about increases tied to inflation, that is, about 2% a year, but I’m afraid that it’s going to be more than this, since the brand-name pharmaceutical companies were already asking for 8% two years ago. Therefore, there’s reason to be concerned.”
Adds Dupré: “It remains to be seen how the mechanisms that are going to be put in place are going to work for controlling price increases. Will these mechanisms apply to all drugs? At the end of the day, it’s ordinary people who are going to pay the difference, mainly, those aged 50 and over, who use more medications.”
For her part, Johanne Brosseau, senior adviser with Aon Consulting, feels that prices will increase at least by the rate authorized by the minister and possibly more, since, unlike the RAMQ, private plans cannot subtract the differences paid by insured persons from the calculation of the maximum annual contribution of $881 or cover less than 71% of the amount claimed, especially when a less expensive generic drug is available. She adds that “the RAMQ will take advantage of the amounts paid by the manufacturers to the government to absorb the price increases due to the price freeze being lifted”.
Lastly, for its part, the pharmaceutical industry lobby group, Rx&D, declined to comment on this issue for now, preferring to wait to see what develops.
For the story on last week’s announcement, click here.
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