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01 April 2020
In October 2019 the Ontario Ministry of Health and Long-Term Care published the key proposed amendments to regulations made under the Ontario Drug Benefit Act (ODBA) and the Drug Interchangeability and Dispensing Fee Act (DIDFA).(1) The proposed amendments aim to reduce the industry's administrative burden and address misalignments with industry standards and policies in other provinces and territories.
Most of the final amendments came into effect on or before 1 January 2020, following public consultations. One notable change compared with the proposed amendments is the removal of the financial cap on ordinary commercial term (OCT) benefits, as opposed to the previously proposed increase to 25%.
The prohibition against rebates under the ODBA and the DIDFA does not apply to benefits in accordance with OCT, which are benefits provided in the ordinary course of business that meet certain conditions. The removal of the OCT cap for interchangeable drugs, previously set at 10% of the drug's value, permits manufacturers to offer greater benefits to wholesalers and pharmacies.
The Ontario government has also announced that as of 1 July 2020, private label products will no longer be prohibited from being designated as a listed drug product or interchangeable.
For further information on this topic please contact Chen Li or Alice Tseng at Smart & Biggar by telephone (+1 416 593 5514) or email (firstname.lastname@example.org or email@example.com). The Smart & Biggar website can be accessed at www.smart-biggar.ca.
(1) For further information please see "Proposed amendments to Ontario Regulations to streamline administrative process, change OCT payment limit, and reduce government payments to pharmacies".
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