First Session, 47th

General Assembly

61 Elizabeth II,

BILL 12

AN ACT TO AMEND THE PHARMACEUTICAL

SERVICES ACT

Received

and Read the First Time ...................................................................

Second

Reading ..............................................................................................

Committee ......................................................................................................

Third

Reading .................................................................................................

Royal

Assent ...................................................................................................

HONOURABLE SUSAN

SULLIVAN

Minister of Health

and Community Services

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTE

This Bill would amend the Pharmaceutical Services Act to enable a

new generic drug pricing model.

A BILL

AN ACT TO AMEND THE PHARMACEUTICAL SERVICES

ACT

Analysis

S.2 Amdt.

Definitions

S.14 Amdt.

Program components

S.18 Amdt.

Special authorization

review

S.23 R&S

Pricing requirements

S.24 Amdt.

Non-lowest price

S.40 Amdt.

Internal review

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2006 cP-12.01

1. Paragraph 2(

l) of the Pharmaceutical Services Act is repealed.

2. Subsection 14(1) of the Act is repealed and the

following substituted:

Program components

(1) The

components of the Newfoundland

and Labrador Prescription Drug Program are:

(

a) the Foundation Plan;

(

b) the 65Plus Plan;

(

c) the Access Plan;

(

d) the Assurance Plan; and

(

e) the Select Needs Plan.

3. (1) Subsection 18(2) of the Act is amended

by deleting the word "or" at the end of paragraph (

a) and by adding

immediately after that paragraph the following:

(a.1) the pan-Canadian Oncology Drug Review; or

(2) Subsection 18(4) of the Act is repealed and

the following substituted:

(4) If, after consideration in an internal review

the request for special authorization is again denied, a prescriber may apply

to the medical practitioner designated by the minister for a review of the decision

and the decision of that medical practitioner with respect to the special authorization

is final.

Section 23 of the Act is repealed and the

following substituted:

Pricing requirements

(1) The

price for a generic drug listed on the formulary shall be no more than the

maximum price calculated in accordance with subsection (2).

(2) The maximum price shall be calculated as a

percentage of brand price in the manner prescribed in the regulations.

(3) Where a submission includes a price for a

generic drug which is less than the maximum price of that drug calculated in

accordance with this section, the price for that drug shall be guaranteed for

the period of time determined by the minister.

(4) The price for a drug determined under this

section, whether it is

(

a) the maximum price calculated in accordance

with this section; or

(

b) less than the maximum price,

shall be the price offered for that drug

to all pharmacies and dispensing physicians in the province.

Section 24 of the Act is amended by adding

immediately after subsection (2) the following:

(3) A person who makes a request under subsection

(1) shall pay the difference in cost between the requested formulary drug and

the lowest price equivalent formulary drug.

6. Paragraph 40(2)(

a) of the Act is repealed and

the following substituted:

(

a) denied participation in any component of the

Newfoundland and Labrador Prescription Drug Program as set out in subsection

14(1) may request an internal review of a decision respecting eligibility for

or cancellation of benefits made under the authority of this Act and the

regulations;

William E. Parsons, Queen's Printer