The policy is part of an overall effort to address rising drug costs, which pose a significant challenge to the New Brunswick health-care system. It will set maximum allowable prices for generic drugs.
The price for generic drugs will be 40% of the brand name price on June 1, 2012 and 35% of brand name price on December 1, 2012.
The provincial government recognizes that reducing generic drug prices will impact pharmacy revenues. In light of this, the provincial government will:
- invest about $4.5 million in 2012-13 to increase dispensing fees and pay a mark-up on generic drugs
- invest $233,000 to implement NB PharmaCheck™, as an insured service under the New Brunswick Prescription Drug Program
- invest $295,000 in a rural pharmacy incentive initiative, and
- invest $1.2 million to help pharmacies offset the costs associated with connecting to the provincial Drug Information System / Prescription Monitoring Program