The Impact of Generic Drug Pricing Legislation and Actuaries' Role
Since 2010, most provincial governments have implemented generic pricing policies that have had a significant impact on generic prices in Canada. Generic drug price dropped from about 65% of brand name drugs prior to the policies to currently about 18% to 35%. Such changes have significant impact on private sector. Various questions were raised and directed to the actuarial department from the plan sponsors, the executives of insurance companies, consultants, etc. In this presentation, we will first look at some background of Canadian generic drug pricing. Then we will talk about how these policies affected our work in the actuarial department at Pacific Blue Cross.