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News

Wholesale Upcharge Implementation Delay

On October 18, 2018 / News

We know that many of you are aware of changes to pharmacy wholesale charges which were meant to take effect today.  While we understand you have been working hard to prepare for these changes, we received some important news regarding them late yesterday afternoon – they are being delayed by at least two weeks to allow for further consultation with the Manitoba government.

We learned of this change via a letter from Health Minister Cameron Friesen. In the letter, he indicated he has decided to delay the implementation of these changes until Nov. 1 to allow for further engagement and consultation.

This is an important and positive development in the relationship between Pharmacists Manitoba and the provincial government. While we still expect that these changes - or changes of similar intent - will ultimately be implemented, the recognition of need for further consultation by the Health Minister is significant. Your Board and executive team have been working for a number of years to improve the government’s understanding of the role and value of pharmacists in Manitoba’s public health care system. The foundation for any progress begins with recognition of the need for consultation on changes, and this is a stage we are very pleased to have reached.

We hope to meet with Minister Friesen during this consultation period. As always, Pharmacists Manitoba will continue to make the case for you, our members— by highlighting how pharmacists can help fill the gaps in Manitoba’s healthcare system and why meaningful consultation of pharmacists prior to development or announcements of new policies is fundamentally important to the work we do every day.

The 5% increase on all Pan Canadian Pharmaceutical Alliance (pCPA) generics has been implemented. The decrease on all brand products and the decrease on the list of high cost drugs for reduced pharmaceutical distribution has been delayed until November 1st. Pharmacies should not see any decrease on your invoices for brand products until that date.

We will continue to update you as this process moves forward.  In the interim, if you have any questions or comments, please don’t hesitate to reach out to us.

To view the updated notice regarding the delay in implementation click here.

 

Sincerely,

 

Barret Procyshyn, President                                                            Dr. Brenna Shearer, CEO

 

UPDATE OCT  19:

The UPDATED - Claims Submission Procedure: Pharmaceutical Distribution Rate Changes Provincial Drug Programs Manitoba Health, Seniors and Active Living Effective November 1, 2018 issued by the Provincial Drug Program (PDP) on October 18, 2018 indicates that the generic drug increase will be delayed until November 1st which is not consistent with our message.

We have confirmed with PDP that the increase has been implemented in the formulary in order to accommodate increased prices that pharmacies may have already been charged for inventory. Pharmacies should be charging Actual Acquisition Cost (AAC) plus their professional fee. If the AAC includes the 5% generic drug wholesale upcharge, pharmacies will be compensated at that price by Pharmacare. Third party insurers are currently following the UPDATED Claims Submission Procedure. We are requesting that NIHB and other third party payers recognize the formulary pricing as implemented by Manitoba Health if they have not already done so.