Time running out to comment on Bill 102-related amendments

“The strange part is that when these [regulations] came out, normal consultation, normal public input for amendments to enact is 30 days,” said Steven Semelman, vice president, pharmacy business initiatives at the Rexall Family of Pharmacies, at Canadian Healthcare Manager’s Face-to-Face Drug Forum in Toronto today.

Instead, the government allowed just a week because “there is urgency to the matters addressed” and “the time period for members of the public to make written submissions on the proposed regulations has been accordingly shortened.”

Fred Holmes, senior director, PBM Centre of Excellence, Emergis, said, “I’m sure that most people aren’t even aware that these are out.”

For some background information on Bill 102, click here.

BILL 102 PRIMER

What is Bill 102?

The Transparent Drug System for Patients Act. This legislation is part of the Ontario government’s plan to reform the provincial drug system. The government is looking at tackling five strategies. These strategies look to address: good drug system governance and operations; strengthening position as a customer; access; appropriate use partnerships; and innovation.

What does it do?

Part I of the Bill amends the Drug Interchangeability and Dispensing Fee Act. The amendments transfer the power of the Minister to make regulations designating products as interchangeable with others and the function and power of the Lieutenant Governor in Council to remove designations of interchangeable products by way of regulation to the executive officer of the Ontario public drug programs(the position of the executive officer is created by amendments to the Ontario Drug Benefit Act [ODBA]).

The executive officer may designate products as interchangeable and remove such designations by publishing updates on the Formulary that will be maintained and published under the Ontario Drug Benefit Act.

The Act further prohibits manufacturers from providing a rebate to wholesalers, operators of pharmacies, companies that own, operate or franchise pharmacies or to their directors, officers, employees or agents with respect to interchangeable products or those products in respect of which the manufacturer has made an application to the executive officer for designation as interchangeable.

Part II makes amendments to the Ontario Drug Benefit Act. It includes principles pertaining to the public drug system. It creates the position of the executive officer of the Ontario public drug programs and sets out his or her functions and powers.

A Citizens’ Council and Pharmacy Council are established to advise the executive officer. The Act also requires the Minister to establish a process to review recommendations made to the executive officer to list a drug product and decisions made by the executive officer.

The ODBA is further amended to prohibit manufacturers, including their suppliers, distributors, brokers, and other agents, from selling a listed drug product at a price higher than its drug benefit price as listed in the Formulary. Source: The Legislative Library, Office of the Legislative Assembly of Ontario

Who does it impact?

Bill 102 will likely affect anyone that needs or buys drugs, including plan sponsors who offer benefit plans for their employees. Also, pharmacists and drug manufacturers will be impacted by the Bill.

What does it mean for plan sponsors?

The Ontario Drug Benefit(ODB)plan will become the second-in-line payer for working seniors with private insurance plans. The publicly funded ODB would no longer pay the majority of a drug’s cost, only any amount not covered by the private plan. This will effectively shift costs from the Ontario government to employers who provide medical and drug coverage to workers older than 65. It could lead to potentially higher costs for employers through higher claims experience and premium increases.

When did it take effect?

October 2006

To comment on this story email craig.sebastiano@rci.rogers.com.