N.S. to cap generic drug prices

The Nova Scotia government plans to cap the cost of generic drugs in its pharmacare program.

Health Minister Maureen MacDonald said the province had to act to counter rising drug costs.

"We have taken action to make sure Nova Scotians get the fair prices they deserve … and to ensure that pharmacare programs remain sustainable," she said Monday.

The cost of drugs supplied to the provincial drug plan has been rising by about nine per cent a year, to nearly $300 million last year. The province expects to save about $6 million this fiscal year.

Under the plan, prices for generic drugs no longer under patent protection would be capped at 45 per cent of their brand-name equivalent by July 1, and 35 per cent a year later.

This means seniors who co-pay for their prescriptions could save as much as $30 on each refill.

Lower drug prices will also reduce profit margins for manufacturers and for pharmacy owners who are still negotiating with the province over how much they will be paid for their services.

Pharmacy owner Martin Singh applauds the decision to cap prices at 35 per cent instead of 25 per cent as Ontario did.

'Good balance'

Singh owns two pharmacies in Nova Scotia, including the Forest Hills Drug Mart in Musquodoboit Harbour. He also owns a pharmacy in London, Ont.

He said Nova Scotia has struck a "good balance."

"Certainly there's going to be an impact on the bottom line," he said. "But pharmacy as part of health care in general has to play its role in helping to keep costs contained."

The Pharmacy Association of Nova Scotia warns that some pharmacies could close.

Allison Bodnar, spokeswoman for the group, said there has to be a commitment for better core dispensing fees for pharmacies.