TORONTO - The Ontario government is promising lower prescription drugs prices starting July 1st.
Health Minister Deb Matthews says the province will lower prices of generic drugs to 25 per cent of brand name drugs for government purchases.
People who pay cash and insurance companies will see generic drug prices fall only to 50 per cent of brand name drugs.
The remaining 25 per cent reduction will be phased in over three years.
Matthews says that means everyone will see drug prices drop, with most generic drugs falling to about 50 per cent of the brand name, down from the current 65 per cent.
However, the Ontario Pharmacists Association warns stores will have to boost dispensing fees and drug prices to offset the loss of $ 750 million a year in fees from generic drug companies.
The government eliminated the professional allowance fees, blaming them for the fact Ontario pays up to five times as much as other jurisdictions for generic drugs.
The New Democrats say the government should have gone after the brand-name drug companies, which account for about 75 per cent of the province's spending on prescription medications.
