Ottawa joins provinces to negotiate lower prescription drug prices, Report

The federal government is joining a drug-buying alliance with Canada’s provinces and territories, health officials said Tuesday. The move should reduce the cost of brand name and generic drugs as officials gain more negotiating power from buying medication in bulk.

Health Minister Jane Philpott said today in a statement that combining the negotiating power of the provinces, territories and federal government will lead to “greater savings for all publicly funded drug programs” and increase access to clinically effective drug treatment.

“Today’s announcement is an important component of the federal commitment to reduce prescription drug costs and improve access to pharmaceuticals through cooperation with provincial and territorial governments,” it read.

It added that the group has so far made 89 negotiations on brand name drugs and has seen price reductions on 14 generic drugs.

The federal government spent some $630 million related to purchasing drugs in 2014. It provides drug benefits to First Nations, Inuit, the RCMP, the Canadian Forces, veterans, federal inmates and refugee protection claimants.

The announcement today comes ahead of a two-day meeting of the country’s health ministers, starting Wednesday in B.C.

Conservative Party leader Rona Ambrose had urged the provinces when she was Health Minister in the previous government to let the federal government into the group.

Agencies/Canadajournal