2012 Bill 12

	12


First Session, 47th General Assembly 61 Elizabeth II, 2012
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

1. S.2 Amdt.
Definitions

2. S.14 Amdt.
Program components

3. S.18 Amdt.
Special authorization review

4. S.23 R&S
Pricing requirements

5. S.24 Amdt.
Non-lowest price

6. 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 Paragraph 2(l) of the Pharmaceutical Services Act is repealed.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 Subsection 14(1) of the Act is repealed and the following substituted: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

14. (1) The components of the Newfoundland and Labrador Prescription Drug Program are:

(a) the Foundation Plan;

(b) the 65Plus 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(2) Subsection 18(4) of the Act is repealed and the following substituted: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.

4. Section 23 of the Act is repealed and the following substituted:

Pricing requirements

23. (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.

5. 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;