PSHCP - Generic Drug Substitutions
Dec 21, 2010
Memorandum/
Note de Service
XO/30/10 December 10, 2010
To/Destinataire: National Board of Directors
From/Expéditeur: Patty Ducharme
National Executive Vice-President
Subject/Objet: PSHCP - Generic Drug Substitutions
This week, many of you requested clarification with regards to the Public
Service Health Care Plan drug card and the issue of generic drug
substitutions as a result of PIPSC circulating a document in the workplace
to their sterwards alleging “that this practice is unfair to Plan
members…and that they will be holding discussions with Treasury Board to
resolve it”. The message is somewhat misleading and unfortunately has
led to unnecessary confusion among PSAC members.
A generic drug is a product with the same medicinal ingredients as its
corresponding brand name drug. These drugs are approved by Health
Canada using the same standards as for brand name drugs. In fact, most
provincial/territorial drug programs require that pharmacists dispense the
lowest-cost alternative medication. Not all drugs have a generic
equivalent, however where they do, they usually cost significantly less than
the brand name drug. Dispensing the lowest cost drug means that the
member of the Plan pays less and the Plan pays less.
During the 2006 renegotiation of the Plan between Treasury Board, the
Bargaining Agents of the National Joint Council and the FSNA, it was
decided that the PSHCP would adopt the practice of dispensing the lowest-
cost alternative. (PIPSC was part of this process and agreed with the
decision to do so.) However, it could not be properly implemented until the
drug card was in place.
That being said, in the event that the prescribing doctor believes that the
brand name drug is necessary, the doctor is required to indicate “no
substitution” on the prescription and the name brand drug will be
dispensed.
So members essentially have three choices:
- accept the lowest-cost alternative (which is almost always the generic
equivalent);
- request the brand name drug and pay the difference in cost;
- discuss the issue with their doctor and if the doctor believes that the
brand name is required, then indicate “no substitution” on the
prescription and the plan will pay the cost.
It is regretful that this information wasn’t clearly indicated to members prior
to the card being implemented. Treasury Board has posted a “Frequently
Asked Questions – PSHCP Benefits Card”, www.tbs-sct.gc.ca/, which
addressed this issue and others. The PSHCP site also links to it and a
Bulletin will be posted early in the new year that addresses several issues
in more detail.
Please do not hesitate to call me if require further clarification.
In Solidarity,
Patty Ducharme
cc: Management Team
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