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NEW POLICY CURBS RISING PRESCRIPTION DRUG COSTS

Released on June 23, 2004

Starting July 1st, the first group of drugs to fall under Saskatchewan Health's Drug Plan's Maximum Allowable Cost (MAC) policy, announced in this year's provincial budget, will come into effect.

Under the new policy, classes of drugs will be reviewed by the province's expert drug review committees to determine which products are equally safe, beneficial, and cost-effective. The price of the most cost-effective drugs will be used as a guide to set the maximum price that the Drug Plan will cover for other similar drugs, used to treat the same condition. The price will not necessarily be set at the lowest cost drug.

"The people of Saskatchewan want a health care system that provides quality services and is sustainable into the future. This policy is one way we are strengthening our system for the long-term," Health Minister John Nilson said. "The Fyke Commission and several other health policy experts have recommended this policy as a rational, evidence-based approach to drug coverage decisions, and we agree with that position."

The initial group of drugs affected are the proton pump inhibitors (PPI). This class is used to reduce stomach acid secretion in patients with various stomach conditions. The Drug Plan spends about $6 million each year on PPIs, but will save $1 million annually when MAC comes into effect.

The new policy will be phased in. As of July 1st, 2004, the MAC price will be in effect for all new PPI prescriptions. For those patients with a current PPI prescription the MAC price will not take effect until the end of their Exception Drug Status (EDS) PPI coverage period or June 30th, 2005, whichever comes first.

Approximately 10,000 people will be affected as a result of this policy. They will receive a letter from Saskatchewan Health informing them of MAC policy, and options available to them.

The Saskatchewan Health Drug Plan lists about 3,500 products in the Saskatchewan Formulary and subsidizes the cost of prescription drugs for approximately 113,000 families. In 2003-2004, Drug Plan expenditures totalled $150 million, a 13 per cent increase from the previous year.

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For More Information, Contact:

Mark Rathwell
Health
Regina
Phone: (306) 787-4083

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