Did you know that prescription drug costs in Canada are a major concern for many Canadians?
According to the Canadian Institute for Health Information, drug costs represent the second-largest share of healthcare spending in Canada, after hospitals.
However, unlike most of your daily purchases, prescription drug prices aren’t advertised, and it can be challenging to research them online or compare prices from pharmacy to pharmacy.
That’s why understanding the factors that make up drug prices in Canada is essential to help you save money and make informed decisions about your prescription purchases.
One of the factors that can affect the cost of your prescription drugs is the pharmacy or store you purchase them from.
This is because pharmacies and stores can apply different markups and dispensing fees to the drugs they sell. While most provincial plans limit these fees and markups that pharmacies charge, some may still charge more, resulting in variations in the final price.
Insurance companies also have maximum markups for prescription drug coverage, and if a pharmacy exceeds this limit, the eligible coverage amount will be limited to the allowable amount. To help you save money on prescription drugs, it’s worth doing some comparison shopping.
Even with insurance coverage, you’re often responsible for a certain percentage of the cost. By comparing prices from different pharmacies, you can help limit your out-of-pocket expenses and potentially save a significant amount of money in the long run. Another way to save money on prescription drugs is through generic substitution.
Generic Drugs
Generic drugs are usually less expensive than their brand-name counterparts, and they can work just as well. If your plan uses generic substitution, you’ll only be reimbursed for the cost of the lowest-priced generic alternative.
However, if your doctor prescribes a brand-name drug, and you prefer it, you can request it and pay the difference in cost. In some cases, your plan might allow a brand-name to be dispensed if the generic isn’t acceptable or if it’s on backorder.
It’s worth noting that if your doctor specifies and hand written “no substitutions” on a prescription, medical evidence supporting the specific name for brand-name medication may be required for an exception to be approved. The Ontario government for example now requires the doctor to provide an Adverse Drug Reaction Forms showing that patients have tried and failed on two generics before it decides to pay for brand name drugs- and the same can be requested by a private plan.
However, it’s important to keep in mind that both generic and brand-name drugs can work just as well, and opting for a lower-cost alternative can help keep drug coverage affordable.
In conclusion, prescription drug costs in Canada can vary significantly depending on several factors, including the pharmacy or store you purchase them from, markups, and dispensing fees. By understanding these factors and doing some comparison shopping, you can help limit your out-of-pocket expenses and potentially save a significant amount of money on your prescription purchases.
