Bill 102: lower generic drug prices from Canadian online pharmacy?

Bill 102, the "Transparent Drug System for Patients" Act is the Ontario government's latest attempt to force lower generic drug prices in Canada.

But will it meaner lower prices for Americans looking for cheaper medications over the internet?

I doubt it. Although I can't find any confirmation on the 'net, I've already been told by one pharmacy owner that the price reductions are dead in the water.

Current generic pricing mandates that a single source generic be at least 10% less than the brand. If there is more than one generic available, the price drops to 25% less than the brand.

Bill 102 wanted to drop the price of all generics to at least half the brand cost. But my source tells me the government is already backing off that demand.

Why? Well, the mind of your typical politician is a scary place but let's just say that the economic health of Canadian pharmacy and the huge population of voting patients they serve might have been adversely affected by the proposed changes.

Generic companies in Canada compete in the market by offering incentives to their customers, the pharmacies. These incentives now comprise a signficant source of revenue to Canadian pharmacies, without which many might have to close their doors. Patients - those pesky voters - wouldn't like having their local pharmacy disappear because some bureaucrat wanted to get their hands on the generic companies' rebates.

Hell is paved with good intentions, and in this case you could say the government's intentions were good. Since the province of Ontario foots the bill for a large percentage of prescriptions, and that money comes from the taxpayer, it seems like a good idea. But the devil is in the details. I'm sure the Ontario Pharmacy Association has met with the Health Minister to explain the financial and "political" repercussions of this legislation.

I have no doubt some sort of acceptable compromise is on its way: in other words, business as usual.

In short, we may see some minor price reductions in the coming months, but nothing worth writing home about.