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Drug Reforms Finalized McGuinty Government Lowering the Cost of Generic Drugs for Ontarians Today, Hon. Deb Matthews, Ontario’s Minister of Health and Long-Term Care, announced that we have finalized reforms to the province’s drug system. These reforms include:

  • Lowering the price of most generic drugs by at least 50 percent;
  • Eliminating ‘professional allowances’ – payments generic drug companies make to pharmacy owners in exchange for stocking their products;
  • Creating a transition fund to assist pharmacies in adapting to the fairer drug system;
  • Supporting access to pharmacy services in rural communities by increasing the dispensing fees paid to rural pharmacies by as much as $5 per prescription filled; and
  • Expanding the MedsCheck program to assist people with diabetes, long-term care home residents and people who have difficulty travelling to their local pharmacy.
The changes will begin to take effect on July 1, 2010.

On April 7th, 2010, the government announced proposed drug system reforms that would accomplish three key objectives:

  • to get lower prices for generic drugs
  • improve transparency in drug pricing
  • to strengthen pharmacy services in Ontario
At the same time, we recognized the valuable role that pharmacists play in providing front line health care to Ontarians and also, the need to provide additional financial support to pharmacies in rural and under-serviced areas.

That is why we began a conversation with pharmacists – and all Ontarians – to learn more about the services they need and want in their community pharmacy. The proposed reforms were posted for a 30 day consultation period and we have listened carefully and thoughtfully to extensive feedback and suggestions from the public and industry.

As a result of this feedback we have made changes to the reforms we originally introduced. In particular we have:

  • Upped the proposed dispensing fee increase from $4 to $5 for rural pharmacies
  • Increased the annual fund to support pharmacists’ professional services from $100 million to $107 million
  • Introduced a transition fee payment each time a prescription drug is dispensed under Ontario’s drug programs to support pharmacists while professional services are being introduced
  • Expanded services under the MedsCheck program and increased the fee
Below is a chart that outlines all of the proposed and final changes to this reform package.

We will continue to work with pharmacists, industry, patients and clients to ensure that pharmacists are properly compensated for the professional services they provide.

For too long, Ontarians have paid too much for generic drugs. These reforms are about fairness and transparency for all Ontarians.


Drug Reform Quick Facts