Researchers have criticized the plan for favouring intermediaries at everyone else's expense
In a recently released study, the Institut de recherche et d’informations socio-économiques determined that Quebec’s 20-year-old drug plan is forcing users to pay drastically higher prices for medication compared to other jurisdictions.
“The system in place favours intermediaries who profit from the system at everyone else’s expense,” said Carlton University professor and review co-author Marc-André Gagnon. According to a report by the Montreal Gazette, the study criticized the public/private policy as obsolete and supportive of wasteful spending.
Comparing Quebec with other regions, the review said per-capita spending in the province is 20% higher than in other parts of the country, and 80% higher than the average observed among the other 34 member countries of the Organisation for Economic Co-operation and Development. At the same time, access to such medications in the province was found to be more difficult compared to jurisdictions with totally public drug plans.
Lipitor, a medication commonly prescribed to manage cholesterol levels, was cited as an example. In Quebec, 500 20-mg tablets would reportedly cost $204 in Quebec, compared to $44 in the United States. “While the retail cost is lower in Canada, you have to add $375 in delivery charges demanded from Quebec by intermediaries – five times more than in the rest of the country,” the study’s authors noted.
According to Gagnon, the same disparities were observed for generic drugs, for which intermediaries in purchasing and distribution supposedly charge markups of 89%. The authors recognized that Quebec Health Minister Gaétan Barrette managed to get discounts from generic-drug manufacturers earlier this year, but they said making the plan fully public would result in savings of $3.8 billion — 12 times greater than those realized now.
Related stories:
Insurers align with government on proposed drug price reform
Quebec strikes deal with generic drug association
“The system in place favours intermediaries who profit from the system at everyone else’s expense,” said Carlton University professor and review co-author Marc-André Gagnon. According to a report by the Montreal Gazette, the study criticized the public/private policy as obsolete and supportive of wasteful spending.
Comparing Quebec with other regions, the review said per-capita spending in the province is 20% higher than in other parts of the country, and 80% higher than the average observed among the other 34 member countries of the Organisation for Economic Co-operation and Development. At the same time, access to such medications in the province was found to be more difficult compared to jurisdictions with totally public drug plans.
Lipitor, a medication commonly prescribed to manage cholesterol levels, was cited as an example. In Quebec, 500 20-mg tablets would reportedly cost $204 in Quebec, compared to $44 in the United States. “While the retail cost is lower in Canada, you have to add $375 in delivery charges demanded from Quebec by intermediaries – five times more than in the rest of the country,” the study’s authors noted.
According to Gagnon, the same disparities were observed for generic drugs, for which intermediaries in purchasing and distribution supposedly charge markups of 89%. The authors recognized that Quebec Health Minister Gaétan Barrette managed to get discounts from generic-drug manufacturers earlier this year, but they said making the plan fully public would result in savings of $3.8 billion — 12 times greater than those realized now.
Related stories:
Insurers align with government on proposed drug price reform
Quebec strikes deal with generic drug association
