View From the Legislature

This past week, provincial, territorial and the federal government concluded negotiations with Canada’s generic drug manufacturers on the price of some of the most commonly prescribed drugs in Canada.

A generic drug is a copy of a brand-name drug that is intended to essentially be the same as the name-brand drug. Generic drugs usually come on the market when the patent protection for a brand-name drug has expired. This competition can then result in a significant cost decrease for the drug which saves patients and taxpayers money.

The conclusion of negotiations this past week resulted in a new deal with Canada’s generic drug manufacturers that will lower the price as of April of this year of nearly 70 of the most commonly prescribed drugs in Canada. These drugs include those taken to treat high blood pressure, high cholesterol and depression.

The price will be reduced by between 25 to 40 percent. This is good news for Canadians who have been concerned about the high cost of many of their prescription drugs. It is also a cost savings to governments and taxpayers across Canada. Manitoba alone will benefit from this deal by saving approximately $8.4 million per year over the length of the five-year agreement.

This is an example of co-operation across governments that is making a difference in healthcare. The Pan-Canadian Pharmaceutical Alliance is the organization that represents all provincial governments when negotiating the price of pharmaceuticals. By all of the provinces coming together to negotiate, we leverage both our buying power and our negotiating power and achieve a better price for Canadians than any single province could on its own.

The deal on pharmaceutical drugs is also an example of how cooperation on other healthcare related purchases can yield savings for taxpayers. For example, medical equipment is purchased by ever province. These purchases range from expensive diagnostic equipment which can cost into the millions of dollars, like an MRI, to hospital beds. Currently, each province negotiates and makes these purchases on their own. Just like there was a benefit negotiating the price of pharmaceuticals together, there may also be a savings by negotiating the price of medical equipment together.

I am pleased to have been asked to lead this effort, together with the Health Minister in Alberta, to work toward joint purchases of medical equipment. Ultimately, it is more than just about getting a better price and a better deal for taxpayers. While that is important, it is equally important to ensure that our healthcare system, which consumes well over 40% of every dollar government spends, is sustainable and available for our children and their children.