These strategies are to ensure the viability of the Drug Plan and coverage for new drugs through the Saskatchewan Formulary:
Low Cost Alternative Policy
Reimbursement is calculated on the price of the lowest cost generic drug with the same effectiveness, quality, strength, and dosage.
Standing Offer Contract (SOC) Program
The Ministry of Health tenders high volume drugs to obtain the lowest possible price. A standing offer contract requires the manufacturer to guarantee delivery of specific drugs to pharmacies through approved distributors at the contracted price. In return, the manufacturer's product is used almost exclusively.
Generic Drug Pricing Strategy
Participating provinces and territories combined purchasing power and established a price point for six of the most common generic drugs at 18 per cent of the equivalent brand name drug. These six generic drugs represent approximately 20 per cent of the publicly-funded spending on generic drugs in Canada. Previously individual provinces and territories pay between 25 and 40 per cent of brand name prices.
Maximum allowable cost (MAC) policy
The policy promotes the use of lower cost drugs. The Drug Plan uses the prices of the most cost-effective drugs as benchmarks. Based on these benchmarks, the Drug Plan sets the maximum reimbursable prices of other similar drugs that treat same conditions.
Product Listing Agreements (PLAs)
These agreements result in better value and assist in managing the financial risk associated with drugs listed on the Saskatchewan Formulary. More information on PLAs.