How much could we save if generics were used more in Canada?
A measurement released in 2010 and compiled by the Canadian Generic Pharma Association, shows that if Canada increased its GFR from 54 per cent to the American GFR level of 75 per cent, the savings would be an estimated $1.6 billion in the first year alone.
A “Pharmacy Benefits Manager” (PMB) in the United States is a third party administrator of prescription drug programs. They are primarily responsible for processing and paying prescription drug claims. They are also responsible for contracting with pharmacies and negotiating discounts and rebates with drug manufacturers.
PMBs manage prescription-drug benefits and claims for employers and health-insurered clients, operate mail-order pharmacies and increasingly offer services aimed at keeping patients compliant with their medications.
Maybe Moosehead Breweries and its union should be out searching for a PMB to help them reduce prescription drug costs so they could maintain healthcare benefit levels, instead of warring in the negotiation room about benefit cuts.
Everyone knows that an aging demographic is creating pressure on our healthcare system. Moosehead is not alone in its concern about healthcare benefits but tough love will not resolve the issue. What we need are alternatives to the status quo.
A first step might be recognition of the fact that most people don’t know the difference between a generic and a branded drug. They rely on doctors and pharmacists to prescribe their drugs. They don’t see any financial benefit in generics. The pharma companies are conflicted by their brand and generic ownerships and Canada’s public health system does not encourage cost-saving initiatives by private citizens.
* W.E. (Bill) Belliveau is a Shediac resident and Moncton business consultant. His column appears on this page every Saturday. He can be contacted at [email protected]
Keywords: drugs, pharmacy, costs
