Ontario’s drug system reforms
The Ontario government recently announced that it has saved an additional $100 million in new savings with the provincial drug system reforms. The reforms, launched in 2006, are saving the province $500 million annually; this year an additional $100 million will be saved.
These savings will be re-invested into providing improved community-based services such as Family Health Teams and home care. As well, drugs to treat cancer and help people quit smoking have been added to the Ontario Drug Formulary.
These savings are due to:
- Cost cutting of generic drugs by half and changing the way Ontario pays for them
- Improved listing agreements with drug manufacturers
- Increased substitution of brand name drugs with generic drugs that are equally effective.
To read the full press release, go to www.health.gov.on.ca.