Pharmaceutical spending and policy is an important aspect of provincial government health plans. The following is a guest post on generic drug policy by Aidan Hollis, Professor, Department of Economics, at the University of Calgary and Paul Grootendorst, Associate Professor, Faculty of Pharmacy, at theUniversity of Toronto. Enjoy!
by Aidan Hollis and Paul Grootendorst
The Supreme Court recently upheld Ontario's refusal to reimburse pharmacy’s “private label” generics. The decision cast some light on the byzantine world of provincial government generic drug reimbursement policy, and the secret rebates and allowances that the province is trying to stop. Unfortunately, whatever happens with rebates, the pricing model adopted by the provinces is neither generating really low prices nor stimulating entry by generics.