AGREEMENT ON HIGH COST DRUGS SAVES MONEY

Released on July 9, 1999

Health Minister Pat Atkinson today announced a new agreement with drug

wholesalers in Saskatchewan will save consumers and the Drug Plan at

least $300,000 a year on high cost drugs.



The agreement puts a cap on the amount of mark-up the two wholesalers

can charge when they sell drugs to pharmacies across the province.



"The drug wholesale mark-up in this province is among the lowest in

Canada, "Atkinson said. "But we are concerned about the impact of the

growing number of high cost drugs coming on the market. If we are to

maintain our provincial Drug Plan and the assistance it provides to

more than 100,000 families, we have to find ways to manage these

rising costs."



Atkinson said under the old agreement, the mark-up on an expensive

drug like the Multiple Sclerosis medication Betaseron could have been

up to $120 for a one-month supply. The new deal will limit the mark

up for any drug to a maximum of $30.



The agreement reached with United Pharmacists Enterprises Limited and

Medis Health and Pharmaceutical Services Limited will result in

estimated annual savings of $275,000 for the Drug Plan and $25,000 for

consumers. Savings will increase in the future as more high cost

drugs are approved for coverage under the Drug Plan.

"I commend our province's drug wholesalers for their willingness

to look at innovative ways of managing the growing cost of

prescription drugs," Atkinson said. "I look forward to

continuing to work in partnership with them in the future."



This year's provincial budget devoted $77.8 million to the Drug

Plan, a 21.5 per cent increase from the previous year. The

number of prescriptions filled in the province rose to 6.6

million last year up 22 per cent from the 5.4 million filled in

1993/94.

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For more information, contact:



Jeff Brown

Communications Branch

Saskatchewan Health

Regina

(306) 787-4088