Labour welcomes gutsy move by Ontario government to curb drug costs
(TORONTO) -- Today’s Health Ministry announcement is welcome news for workers and retirees with drug benefit plans, the public, and for people who rely on Ontario’s Drug Benefit Program, all of whom have been squeezed for too long by the scandalous costs of drugs.
Government reforms to enable expanded access to more affordable drugs include proposals to substantially lower the cost of generic drugs; curb back-room deals between pharmacies and generic drug companies that drive up consumer costs, and provide a strong vehicle through which private insurers are able to lower premium costs and make drug plans more accessible.
“The amount of money gobbled up in profits by drug companies and big pharmacies has always been at the expense of the workers and the public,” says OFL President Sid Ryan. “These are the real cost-drivers in Ontario’s health system – not hospitals, nurses or other staff.”
Ryan noted that the pharmaceutical industry has deep pockets which it has always availed itself of. “We watched the industry in the U.S. try to sink every reform but we’re ready for whatever blowback the generic drug companies and big pharmacies send our way – we welcome it – and so do workers, retirees and the public.”
Ontario’s publicly funded drug programs account for almost 10% of total health care spending in Ontario (over $4 billion). Of this 10%, more than three-quarters is spent on brand and generic drugs (approximately $3.4 billion).
Government reforms to enable expanded access to more affordable drugs include proposals to substantially lower the cost of generic drugs; curb back-room deals between pharmacies and generic drug companies that drive up consumer costs, and provide a strong vehicle through which private insurers are able to lower premium costs and make drug plans more accessible.
“The amount of money gobbled up in profits by drug companies and big pharmacies has always been at the expense of the workers and the public,” says OFL President Sid Ryan. “These are the real cost-drivers in Ontario’s health system – not hospitals, nurses or other staff.”
Ryan noted that the pharmaceutical industry has deep pockets which it has always availed itself of. “We watched the industry in the U.S. try to sink every reform but we’re ready for whatever blowback the generic drug companies and big pharmacies send our way – we welcome it – and so do workers, retirees and the public.”
Ontario’s publicly funded drug programs account for almost 10% of total health care spending in Ontario (over $4 billion). Of this 10%, more than three-quarters is spent on brand and generic drugs (approximately $3.4 billion).
Contact:
Patrick (Sid) Ryan
President, Ontario Federation of Labour
416.209.0066 (mobile)
cope343
© The Ontario Federation of Labour http://www.ofl.ca