CLHIA-ACCAP

CLHIA Report on Prescription Drug Policy

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18 THEREFORE, THE CLHIA RECOMMENDS THAT: • TO THE EXTENT THAT PLAS CONTINUE TO BE USED BY PROVINCIAL GOVERNMENTS, THESE LOWER PRICES SHOULD BE EXTENDED TO ALL PAYERS. b.2.2 Assessing the Value of Genetic Tests An emerging issue that has been raised by some stakeholders with the CDR/pCODR/INESSS approval process relates to the emergence of personalized medicine whereby tests can be done prior to administering a drug to determine whether an individual will respond to the drug. This is an exciting area of medical advancement and may drive down drug costs as only those likely to respond will be prescribed a particular drug. However, it is currently not clear which oversight body will assess the predictive value of a particular test. In addition, it raises the issue of whether a cost-benefit analysis of a particular drug should include both the costs of the test and drug - as in practice they will both be required for each patient. At the moment, the respective mandates of the CDR/pCODR/INESSS address only drugs and not the tests and this represents a gap in the regulatory environment in Canada. THEREFORE, THE CLHIA RECOMMENDS THAT: • THE CDR/PCODR/INESSS MANDATES BE EXPANDED TO INCLUDE GENETIC TESTS THAT ARE TIED TO PARTICULAR DRUGS AND THAT THEIR ASSESSMENT CONSIDER THE PREDICTIVE VALUE OF EACH TEST AS WELL AS THEIR RELATIVE COST-BENEFIT WHEN DONE IN CONJUNCTION WITH A DRUG. b.3 Bringing Generic Drugs to Market Generic drugs are a safe and effective alternative to brand name drugs and their use plays an important part in helping to control prescription drug costs in Canada. As illustrated below, in late 2009, the Province of Alberta set an important precedent by announcing its intention to cap generic drug prices as a percentage of the brand name drug at 45 per cent for both public

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