Lower generic drug prices in BC could mean savings for plan sponsors

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The government of British Columbia recently announced a new drug pricing regulation that will mean lower generic drug prices for B.C. residents. It is our understanding that these changes will apply to both public and private plans, which could result in savings for plan sponsors and plan members.

The new generic pricing regulation will come into force on April 1, 2013, and the price of generic drugs will be reduced in stages as follows:

Date Generic price
Currently 35% of brand
April 1, 2013 25% of brand
April 1, 2014 20% of brand

 

Generic substitution saves plan sponsors money

Did you know? The average claim for brand name drugs is approximately $72, versus $27 for generics.* Generic drugs are clinically identical to the counterpart brand name drug, with the same active ingredients. But the cost difference is significant, and plans that do not have generic substitution are not maximizing the savings possible once the patent on expensive brand drugs expires.


Sun Life believes that generic substitution is an effective cost-saving measure on most plans that will help ensure drug plan sustainability in the long run. This year, Sun Life moved to make generic drug substitution standard on most plans.

Questions?

Please contact your Client Service Administrator at 1-877-786-7227.

*Source: IMS Brogan, CompuScript