Return some excess drug revenues to employers, CLHIA says in submission to PMPRB

Benefits Canada

10 August 2020 - In its submission to the Patented Medicine Prices Review Board’s draft guidelines, the Canadian Life and Health Insurance Association is suggesting that the board consider disbursing excess revenues from pharmaceutical companies to employers rather than just to the provincial and territorial public payers.

Currently, any excess revenues — determined by voluntary compliance undertaking or orders from the PMPRB — are paid to Canada’s receiver general and then returned to public payers based on an existing formula. But, argued the CLHIA in its August submission, “employers in Canada can incur significant excessive costs as well and we believe they should also share in any reimbursements. 

Accordingly, we recommend modifications to legislation to facilitate the PMPRB developing a mechanism to ensure that all stakeholders who were impacted by excessive revenues, including plan sponsors . . . who provide drug benefit plans for their employees, are reimbursed equally.”

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Michael Wonder

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Michael Wonder

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Medicine , Regulation , Pricing , Canada