REASONABLE BASED PRICING
Subject to Revision
Updated June 23 , 2004

A cost containment initiative was introduced in June, 1998 which involved the setting of a maximum allowable cost for certain categories of over the counter drugs.

The Newfoundland and Labrador Prescription Drug Program identified certain over-the-counter medications for which the program currently reimbursed. Generally, a wide range of prices exist for a variety of brand name medications within a chemical entity.

An initiative was undertaken to set a maximum allowable cost for certain drugs categories so that all brands within the category would be reimbursed at the same price. In order to accommodate this proposal, the Newfoundland Pharmaceutical Association and the Newfoundland and Labrador Medical Association requested that Government provide legislative authority that would permit retail pharmacists to substitute brands of over-the-counter drugs. This was accommodated by the introduction of the Dispensing of Substitute Brand-Name Drugs Regulations. These regulations were recently incorporated into the Pharmacy Regulations. Current regulations were reviewed and are supported by the Newfoundland Pharmaceutical Association and the Newfoundland and Labrador Medical Association.

Drug categories currently approved under these Regulations are:

Acetaminophen 80mg/ml Drops
Acetaminophen 32mg/ml Elixir
Acetaminophen 120mg Suppository
Acetaminophen 325mg Suppository
Bisacodyl 5mg Tablet
Bisacodyl 10mg Suppository
Dimenhydrinate 50mg Tablet
Dimenhydrinate 3mg/ml Liquid
Docusate Sodium 100mg Capsule
Docusate Sodium 4mg/ml Syrup
Docusate Calcium 240mg Capsule

Effective June 15, 1998, the Drug Program set a maximum allowable cost for each category of drugs approved under these Regulations. These prices have been negotiated and agreed upon between the Drug Program and the Newfoundland Pharmaceutical Association.

The following pages outline the maximum allowable cost for each category. Also listed are the DINs currently in our system as benefits for which the maximum allowable cost price will apply. The Drug Program shall reimburse the cost of the actual brand dispensed, up to the established maximum amount per unit, for example, under the category Dimenhydrinate 50mg Tablets there are nine different brands listed, with a maximum reimbursement of $.0115 per tablet. For brands which cost more, no more than the maximum reimbursable amount of $.0115 per tablet will be paid. Please keep in mind that this is not an Interchangeable Listing

If there is a product in any of these categories that you wish to see listed please contact NewTel Information Solutions at (709) 753-3615 or 1-888-724-7760 with information pertaining to the product.

Non-Proprietary Name/ Formulation and Strength/ Maximum Unit Reimbursement

Acetaminophen 80 mg/ml drops...........................$0.1486 per ml