To help ensure the viability of the Drug Plan, and to be better able to provide coverage for new drugs through the Saskatchewan Formulary, the Ministry has the following strategies in place:

Interchangeable products are different brands of the same drug with the same strength and dosage form that are equivalent in therapeutic effectiveness and quality. In the case where more than one interchangeable product is available, the Drug Plan reimbursement is calculated on the price of the lowest cost interchangeable generic drug.

The Ministry tenders high volume drugs in certain interchangeable groups to obtain the lowest possible price. An accepted tender, called a standing offer contract, requires the manufacturer to guarantee delivery of the specific drug to Saskatchewan pharmacies through approved distributors at the contracted price. In return, the manufacturer's product is used almost exclusively. This tender process saves Saskatchewan residents and the Drug Plan a considerable amount annually.

The Ministry is implementing a plan to lower generic drug prices in Saskatchewan. This will result in savings to Saskatchewan residents and the provincial Drug Plan.

 For more information see news release, May 4, 2011.

For many common medical conditions, drug manufacturers market a wide variety of prescription drugs that often vary in price but achieve the same medical effect. Under the MAC policy, the Drug Plan obtains expert advice on which prescription drug products within a group of similar medications are safe and beneficial, and the most cost-effective. The price of the most cost-effective drugs are used as a guide to set the maximum price the Drug Plan will cover for other similar drugs used to treat the same condition. Currently this policy applies to one drug class, the proton pump inhibitors.

The Ministry enters into product listing agreements with drug manufacturers. PLAs result in better value for public funds spent on drugs and assist in managing the financial risk associated with drugs listed on the Saskatchewan Formulary. Click here for more information on PLAs.