For Immediate Release

TORONTO, Apr. 27, 2006 - Green Shield Canada believes that the impact of the Transparent Drug System for Patients Act, Bill 102, will be positive, with most customer plans requiring minimal changes.

Green Shield Canada commends Ontario Health Minister George Smitherman on the introduction of the Transparent Drug System for Patients Act that will result in positive changes to the province’s drug system. The Drug System Secretariat was established in June 2005 by the Minister of Health to conduct a review of the drug system. Green Shield Canada was actively involved in consultative meetings with the Secretariat and subsequently provided a submission in November 2005. Our submission provided numerous recommendations on changing the current drug system, including our views on access to drugs, drug pricing, interchangeability, and the role of the pharmacist as a key player in the continuum of care. As the leading specialist in health and dental benefits programs in Canada, we believe our data and expertise are valuable sources of information from which governments can make informed decisions. We are proud that we were asked to take part in this initiative and pleased that many of our suggestions were included in the Transparent Drug System for Patients Act. 

During a special technical briefing on the proposed legislation, which Green Shield Canada attended, the Drug Secretariat listed the many issues that made the new legislation necessary, including a slow drug review process, the lack of patient input, lack of transparency, an inefficient distribution network and most importantly the need for a better return on Ontario’s investment in health care. These issues are not new for Green Shield Canada and have been at the centre of our advocacy efforts in Ontario, and across Canada, for many years. We are pleased that the Minister’s recommendations recognize the importance of employer sponsored drug plans, and the need for government policies on listing, pricing and access, to support the viability of employer sponsored plans.

The recommendations Mr. Smitherman announced are in five major areas. They cover improved access to drugs, value for the dollars spent, proper use of drugs, innovation, and transparency in the public drug system. In the area of access to drugs, Ontarians will see faster availability of drugs with a decrease in the need for administrative procedures by patients and their health providers.

To ensure value for dollars spent, the government intends to leverage its purchasing power to negotiate with manufacturers for better prices. Generic drugs will become more accessible. Of great significance will be the inclusion of the pharmacist in the primary health care team and compensation of the pharmacist for cognitive services. We believe that recognizing the value that pharmacists can bring to patient outcomes will be a defining event for the health care system. It will not, however, be without its difficulties. The criteria to determine what services will be reimbursed, and at what rate, will be known as the legislation is implemented. As the policies are written, we can anticipate that there will be pressure on plan sponsors to consider cognitive fees as part of benefit plan design.

Green Shield Canada has always promoted the idea of the right drug for the right person at the right time and offers a number of products to help fulfill this mandate. The new legislation echoes this same goal in its promotion of the appropriate use of drugs. Its support of best practices in prescribing, inclusion of the pharmacist in decision making and encouraging electronic access to prescription histories will ensure healthy outcomes.

Tightly woven throughout the legislation are guidelines for transparency and accountability. An Executive Officer of Drug Programs will be appointed to ensure governance principles are adhered to. The Officer will be responsible to make the drug system more efficient and inclusive of all constituent views. Especially welcomed is the proposed citizens’ council that will give the public an opportunity to voice their opinions.

We have reviewed the legislation and are in the process of measuring and quantifying the potential impacts of each recommendation on our customers’ current benefit plans. A full assessment depends on clarification of some aspects of the proposals. There will be positive and negative effects, which plan sponsors will need to evaluate to evolve their plan designs. Although it is too soon to assess the full impact of the legislation, we believe that the impact on our customers’ benefit plans will be positive.

There will be significant changes to the cost of drugs. Greater use of generic products, lower prices for both brand and generic drugs, and a lower mark-up will tend to lower costs. Faster access to more costly newer drugs, second-in-line payer provisions, and introduction of cognitive fees for pharmacists will offset these savings to some extent. “On balance increases in costs may be offset with savings derived from efficiency in drug use, transparency and accountability in the operations of the drug system.” says David Garner, President and CEO. “As is our practice, we will consider the impact of the changes over the short and long term, realizing that impacts can accrue over time.” Green Shield Canada, with its pharmacy and medical professional experts, will continue to review the legislation and will be communicating with customers to further explain the impacts and discuss the need for any changes.

About Green Shield Canada
Green Shield Canada specializes in group and individual health and dental benefits programs and administration. We are recognized as a leader and innovator in the provision of health and dental benefits administration to a growing number of plan members in a variety of industries from manufacturing, public service, education, union and other employer and association groups. In addition, we also provide health and dental adjudication for a number of insurance companies. As Canada's only national not-for-profit health and dental benefits carrier, our goal is to serve the public interest by providing the most efficient and effective benefits programs. We are committed to exceeding our customers’ expectations by offering the highest quality of service, and can be relied on to be responsive and flexible. You can reach us at www.greenshield.ca or 1-888-711-1119.

For further information, please contact:
Sylvia Kowal, Director of Marketing and Communications
Green Shield Canada
416-221-7001 Ext. 246
sylvia.kowal@greenshield.ca