Canadian drug prices are regulated at both the federal and provincial levels. This creates a complex system, but understanding the basics can help you make informed decisions.
The Patented Medicine Prices Review Board (PMPRB) sets the maximum allowable price for patented drugs. This price is based on a comparison with prices in other countries. Therefore, Canadian prices tend to be lower than in the US, but higher than in many European countries.
- The PMPRB uses a reference price methodology, considering prices in seven comparator countries including Germany, France, Italy, Switzerland, Sweden, the UK, and the US. This process aims to ensure that Canadians aren’t overpaying for patented medications.
Once a drug loses patent protection, it becomes a generic drug. Generic drug pricing is mostly controlled by provincial governments and competition between manufacturers. This often leads to significantly lower prices than patented versions.
- Provincial formularies list the drugs covered by public drug insurance plans. These lists can influence what drugs are available and at what cost. Pharmacies must adhere to provincial regulations concerning price transparency and patient cost-sharing.
To find the best price for your medication, consider the following:
Check your provincial drug plan coverage: understanding your benefits will determine out-of-pocket expenses. Compare prices between pharmacies: local pharmacies often offer competitive prices, and some offer discounts or loyalty programs. Consider generic alternatives: these typically offer substantial savings compared to brand-name medications. Ask your doctor about potential cost-saving options: they may be able to prescribe a different medication or suggest a suitable alternative.
Remember, prices fluctuate and vary depending on the drug and pharmacy. Always obtain accurate pricing information before purchasing medications.
