Insurers show support for federal government’s reforms to drug pricing regulations

Insurers are backing the federal government’s changes to drug pricing regulation, welcoming the government’s efforts to make medicines more affordable and accessible.

The federal government recently announced the final amendments to the Patented Medicines Regulations, which aims to give the Patented Medicine Prices Review Board (PMPRB) the right tools to ensure that medicine prices in Canada are properly priced.

Broadly speaking, the amendments do the following to help control drug prices:

• Change the “basket” of countries Canada is compared to when setting drug prices. This means Canada’s drug prices will be judged against countries that actually resemble Canada’s population, economy and approach to healthcare.
• The PMPRB will be provided with the actual market price of medicines in Canada, instead of the “sticker” price. This allows the board to more accurately assess whether a price is reasonable when setting a price ceiling.
• The changes will allow the PMPRB to consider whether the price of a drug actually reflects its value to patients.

Several insurance companies have come forward to welcome the amendments.

“Manulife strongly supports measures to reduce the cost of medications,” said Manulife Canada head of group benefits Donna Carbell in a company statement issued in response to the federal amendments.

Carbell added that the changes are important since “it will help employers continue to provide comprehensive drug coverage to employees and their families.”

“We endorse the federal government’s reforms to make prescription drugs more affordable for Canadians,” said Canada Life executive vice-president of group customer Brad Fedorchuk in another statement. “The life and health insurance industry has been vocal in support of these changes, and Canada Life applauds this step.”

Fedorchuk mentioned that once the government implements the reforms, benefits plan sponsors and their members will also see reduced costs, keeping workplace benefit plans affordable for private drug coverage.

“This is a win for Canadians,” the executive vice-president remarked.