OCTOBER 15 - 30, 2006
VOLUME 3 NO. 16

POLICY & POLITICS

New ON drug law cuts doctor red tape

Bill 102 aims to reduce MD paperwork and lower generic drug costs


Thanks to some new legislation, Ontario doctors should soon have less paperwork, better lines of communication with provincial health authorities and easier access to cheaper drugs for patients.

All these changes are contained in the Transparent Drug System for Patients Act (also called Bill 102) which came into effect on October 1, with several of its provisions set to kick in over the next six months. The new regulations amend the Ontario Drug Benefit (ODB) program — which provides prescription drugs at no cost to elderly, disabled or welfare-recipient patients — and the Drug Interchangeability and Dispensing Fee Act.

A GENERIC PROBLEM
Before Bill 102 was approved earlier this year, the average prices of generic drugs were skyrocketing in Ontario. In fact, the province has the highest average generic drug costs in the developed world. With such high costs to the province's Ministry of Health and Long-Term Care, the sustainability of programs like the ODB was in doubt — something had to be done.

THE DRUGS THEY NEED
In June 2005, the Ministry of Health began a "system-wide review" under the new Drug System Secretariat, led by Helen Stevenson. That organization's recommendations in January 2006 came to form the basis for Bill 102. Physicians' concerns were considered carefully, said Ms Stevenson, and the ministry decided to tackle two major MD gripes: too much paperwork and too little transparency in the decision-making process on approving exceptional access to certain drugs (under a rule known as Section 8).

"The main problem physicians have had recently with Section 8 is that you send in requests for exceptional use and you don't get a response in a timely fashion," said Dr Malcolm Moore, a Toronto oncologist, "or you get a response that seems inconsistent with principles used on previous reviews." Not only was this a bunch of useless red tape for doctors, he added, but it was a barrier to patient care.

Bill 102 regulates conditions for exceptional access to drugs so doctors don't have to apply again every time a similar situation arises. Dr Moore, a former member and chair of the Ministry of Health drug approval committee, said it also makes the process of accepting new drugs to the formulary more transparent.

All in all, Dr Moore thinks the new regulations will make life easier for Ontario doctors and their patients: "Bill 102 makes Section 8 much more streamlined, he said."

CHEERS AND JEERS
Some patient advocacy groups have cited concerns over the creation of a powerful new office of the Executive Officer, which has extensive powers over ODB drug approval. Yet for the most part their reaction over Bill 102 has been positive. Louise Binder of HIV-positive patient advocacy group Canadian Action Treatment Council says that the legislation's focus on getting more drugs to more patients is a positive move.

Other aspects of Bill 102 have proven more controversial. Pharmacists have been up in arms over the government's strict limit on 'professional allowance' rebates paid to pharmacies by generic drug companies in exchange for using their products (a practice which is entirely banned in the United States). Ontario's high generic drug prices are partially due to this common practice whereby pharmacists pay artificially high prices for drugs and then get as much as 60% back in the form of rebates.

Bill 102 attempts to provide some compensation for disgruntled pharmacists: dispensing fees will rise slightly, and pharmacists will begin to receive payments soon for providing counselling services for patients.

 

 

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