The federal government wants to make some changes to the way it evaluates the new drug prices. Apparently, this will save Canadians billions in the next ten years.
The government released the changes they want to make to the Patented Medicine Prices Review Board. It was first set up in 1987 as a shield against “excessive prices.” They are set to make their appearance next July.
The board actually relies on the outdates regulatory tools and the pieces of information that foreign medicine pricing authorities changes years ago. As a result, the list prices for the meds in Canada are the highest in the whole world. This comes from Health Canada.
Under these new regulations, the board will not compare the prices with the United States and Switzerland, when they figure out what the companies are allowed to charge. These two countries are also on the list with the most expensive meds in the whole world. They will compare the drug prices with France, Germany, and Italy. The list has recently added Japan, Spain, Norway, Australia, Belgium, and the Netherlands.
This can save them a lot of money
The board will also have to take into account the drug’s value and financial impact on consumers in this health system, when they decide if the price is too high or not. The reforms will make medicines more affordable and accessible to Canadians. It could save them $13 billion in the next decade. It could also mean the foundation for national pharmacare.
This decision could also allow the board to see the actual market price of the meds and the rebates that have been added. The committee did not have access to this before.
We need to keep in mind that the changes will apply to the new drugs, that are not on the market right now.
Meagan Kozlovs is a reporter for Debate Report. She’s worked and interned at Global News Toronto and CHECX. Megan is based in Toronto and covers issues affecting her city. In addition to her severe milk shake addiction, she’s a Netflix enthusiast, a red wine drinker, and a voracious reader.