Research poster presentation - session I Health care use & policy studies - health technology assessment program| Volume 15, ISSUE 4, PA26, June 2012

PHP73 Budget Impact Analysis: Do Canadian Guidelines Meet the Needs of Public Drug Plan Managers?


      The objective of this research was to validate with provincial drug plan managers if the guidelines for conducting pharmaceutical budget impact analyses (BIA) in Canada, published by the Patented Medicines Prices Review Board (PMPRB) in 2007, meet their needs.


      A survey entitled Budget Impact Analysis Requirements by Canadian Provincial Drug Plans was developed and sent by email to all provincial drug plan managers, at the exception of Quebec. The survey consisted in 14 questions that take approximately twenty minutes to complete.


      The participation rate of the provinces was of 55.6%. In 60% of the participating provinces, the person that completed the questionnaire was the drug plan manager, therefore a reliable source of information. Forty percent of the participating provinces prefer that the market size for the BIA to be estimated using a population data-based model versus a claims data-based model, 40% prefer both models, and 20% have no specific preference. The guidelines developed by PMPRB recommend the use of a population data-based model. 100% of the participating provinces agree that if a comparator will lose its patent over the time horizon, it should be taken in consideration in the BIA. The guidelines, however, do not provide any recommendations regarding the inclusion of generic products. Accurate drug cost reporting is an important component of the BIA. The dollar or percentage value for wholesaler mark-up, pharmacy mark-up, inventory allowance and dispensing fees provided by 80% participating provinces do not match those recommended by the BIA guidelines.


      Overall, the guidelines for conducting pharmaceutical BIA in Canada, published by PMPRB in 2007, meet the needs of provincial drug plan managers. However, they should be updated in order to reflect the changes that have occurred in the pharmaceutical industry, especially those around the Canadian price of generics.