About the Saskatchewan Formulary
For Information on the various programs at the Drug Plan & Extended Benefits Branch, please visit the Government of Saskatchewan Health website at Drug Plan & Extended Benefits Branch or more specifically:
Branch Information
The Drug Plan and Extended Benefits Branch was formed on April 1, 1996 by amalgamating the Drug Plan program, the Supplementary Health program, the Saskatchewan Aids to Independent Living program, and the Income testing for Special Care Homes.
MISSION STATEMENT
Drug Plan and Extended Benefits Branch provides benefits to the eligible Saskatchewan population by:
promoting optimal, cost-effective drug therapy and extended benefits subsidizing qualifying residents and facilitating the use of the database BRANCH ROLE
leading policy development on Drug Plan, SAIL and Supplementary Health and Family Health Benefits related issues. providing Drug Plan benefits to the eligible Saskatchewan population. providing non-insured health benefits to residents nominated for Supplementary Health benefits by the Department of Community Resources and Employment, and for residents receiving Family Health Benefits. providing Saskatchewan Aids to Independent Living (SAIL) Program benefits to eligible residents. administering, on behalf of health regions, income tested resident charges for residents of Special Care Homes. providing case management services in appropriate areas. improving program delivery and accountability to the public and the Legislature through trends analysis and annual statistical reports. providing funds for various initiatives that encourage appropriate use of drugs, e.g. RxFiles Academic Detailing Program. using the claims paid database for various studies to promote appropriate use of drugs.
About the Saskatchewan Formulary
The Saskatchewan Formulary lists the drugs, which are covered by the Drug Plan. A prescription is required for all drugs dispensed under the Drug Plan with the exception of insulin, blood-testing agents, urine-testing agents, syringes, needles, lancets and swabs used by diabetic patients.
THE FORMULARY
The Saskatchewan Formulary is a listing of the therapeutically effective drugs of proven high quality that have been approved for coverage under the Drug Plan. It is compiled by the Minister of Health with the advice of the Saskatchewan Formulary Committee (SFC) and is then prepared, maintained and distributed by the Drug Plan and Extended Benefits Branch.
The SFC is advised and assisted by the Drug Quality Assessment Committee (DQAC). Members of both committees are appointed by the Minister of Health.
The Saskatchewan Formulary is published annually in July. Additions to the Formulary are made throughout the year; interchangeable generic drugs are added monthly and other products are added quarterly.
The ongoing work of the SFC includes the evaluation of new drug products as they are introduced, and the periodic re-evaluation of all listed products. The goal is to list a range and variety of drugs that will enable prescribers to select an effective course of therapy for most patients.
For the Drug Review Process, please see Product Submission Process.
EXCEPTION DRUG STATUS (EDS)
Certain drugs are reviewed and recommended by the Saskatchewan Formulary Committee for coverage under the Exception Drug Status (EDS) Program. All recommendations must be approved by the Minister of Health. The drugs usually fall into one of the following categories:
The drug is ordinarily administered only to hospital in-patients but is being administered outside of a hospital because of unusual circumstances. The drug is not ordinarily prescribed or administered in Saskatchewan, but is being prescribed because it is required in the diagnosis or treatment of an illness, disability, or condition rarely found in Saskatchewan. The drug is infrequently used because Formulary products are usually effective, but are contraindicated or found to be ineffective due to the clinical condition of the patient. The drug has been deleted from the Formulary but is required by patients previously stabilized on the drug. The drug has potential for use in other than approved indications. The drug has potential for the development of widespread inappropriate use. The drug is more expensive than listed alternatives and offers an advantage in only a limited number of indications.
Drugs approved for Exception Drug Status coverage are subject to the same deductible and co-payment as the patient's Formulary drugs.
EDS Application Process
Physicians, dentists, duly qualified optometrists (or authorized office staff), nurse practioners and pharmacists may apply for EDS. Requests can be submitted by telephone, by mail or by fax. A toll-free line with an electronic message system is available exclusively for requests on a 24-hour basis. The telephone number to access this line is 1-800-667-2549; the Drug Plan EDS Unit fax number is (306) 798-1089. The following information is required to process all EDS requests: patient name, patient Health Services Number (9 digits), name of drug, diagnosis* relevant to use of drug, prescriber name and phone number. Requests are processed daily on a continuous basis. Patients are notified by letter if coverage has been approved and the time period for which coverage has been approved. If a request has been denied, letters are sent to the patient and prescriber notifying them of the reason for the denial. In most cases, the Drug Plan requires more information to determine the patient's eligibility for coverage, and will reconsider coverage at such time as further information is received. If the drug requested is not a benefit under the Drug Plan, the patient and prescriber are notified. Payment for the medication is the responsibility of the patient in these cases. It is important to note that not all medications currently available on the market in Canada are benefits under the Saskatchewan Drug Plan or under the EDS Program of the Drug Plan. The majority of EDS requests are routinely backdated 30 days from the time the Drug Plan receives the request. Provision can be made for further backdating of EDS coverage on a case-by-case basis by staff in Pharmaceutical Services Division. However, there is no provision or backdating further than one year from the current date. Certain products may be granted EDS for non-approved indications. This is the case only when the Saskatchewan Formulary Committee has reviewed evidence to demonstrate safety and efficacy and the prescriber is aware the drug is being prescribed for a non-approved indication.
* For pharmacist-initiated EDS requests:
The diagnosis, which must be obtained from the physician or physician's agent, is to be consistently documented within the pharmacy, whether the documentation is on the original prescription, computer file, or EDS fax form.
CRITERIA FOR COVERAGE UNDER EDS
The criteria is established by the Saskatchewan Formulary Committee in consultation with the Drug Quality Assessment Committee, and is listed in the Saskatchewan Formulary. See Appendix A, for details regarding EDS criteria.
OVER-THE-COUNTER PRODUCTS
Over-the-counter (OTC) products are generally not included as benefits of the Drug Plan.
Product Interchangeability and Pricing
One function of the Saskatchewan Formulary Committee is to identify interchangeable drug groups. Interchangeable products are different brands of the same drug with the same strength and dosage form that are equivalent in therapeutic effectiveness and quality.
The Formulary lists two types of interchangeable drug groups; Low Cost Alternative, and Standing Offer Contract.
Low Cost Alternative
In order to ensure price stability for the Formulary period, the Drug Plan and Extended Benefits Branch requires drug manufacturers to provide guaranteed maximum prices for the period. The prices constitute the maximum price that the Drug Plan will allow for those products during the effective Formulary period.
Any drug in a Low Cost Alternative interchangeable group can be used to fill a prescription. The drug cost component in the approved prescription price is the actual acquisition cost of the drug up to the lowest price listed in the Formulary within that interchangeable group.
Standing Offer Contract (SOC)
The Drug Plan tenders the drugs in certain interchangeable groups to obtain the lowest possible price. An accepted tender, called SOC, requires the manufacturer to guarantee delivery of the specific drug to pharmacies through approved distributors at the contracted price. In return, the manufacturer's product will be used almost exclusively. This tender process, in 2007-08 saved Saskatchewan residents and the Drug Plan approximately $12.9M.
Only the accepted tendered drug can be used to fill a prescription in an SOC interchangeable group. If a prescription is ordered as "no substitution" for any brand other than the SOC brand listed, the Drug Plan will cover the actual acquisition cost up to the listed SOC unit price. The difference in acquisition cost between the brand dispensed and the cost covered by the Drug Plan is the responsibility of the consumer.
"No Substitution" Prescription Drug Coverage
It is recognized that extremely rare cases may exist in which a person is not able to use a particular brand of product. In such cases, the physician may request exemption from full payment of incremental cost when a specific brand of drug in an interchangeable category is found to be essential for a particular patient. There is no provision for "blanket" exemptions. Each request must be patient and product specific.
Maximum Allowable Cost (MAC)
Implementation of the MAC policy began on July 1, 2004. Currently this policy applies to one drug class, the proton pump inhibitors, and it may be expanded to other drug classes in the future. Savings achieved with MAC will be available to fund significant new therapies that will be coming in the future and will help to ensure the viability of the Drug Plan.
Under the new 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. The MAC is not necessarily set at the price of the lowest cost drug.
Physicians can continue to prescribe whichever drug they choose. This new policy only limits the amount that is reimbursed.
See Appendix I for more information regarding MAC.
Product Distribution
Two distribution networks are used to deliver drugs to pharmacies; manufacturers direct to pharmacies, or manufacturers to pharmacies via distributors and Saskatchewan wholesalers.
Drug Plan Overview
ELIGIBLE BENEFICIARIES
Saskatchewan residents with valid Saskatchewan Health Coverage may be eligible for Drug Plan benefits.
TYPES OF BENEFICIARIES
Saskatchewan Assistance Plan recipients; Families/Individuals applying for and approved for Special Support; Guaranteed Income Supplement recipients; Persons 65 years and older who reside in licensed special care homes or hospitals and whose income is at or below the Saskatchewan Income Plan level; Saskatchewan Income Plan recipients living in the community; Families/Individuals approved for Family Health Benefits; SAIL beneficiaries (Paraplegics, Cystic Fibrosis, and Chronic Renal Disease); Persons approved under the Drug Plan as Palliative Care; Government Wards; Inmates of provincial correctional institutions; Families granted Emergency Assistance. Seniors' Drug Plan & Children's Drug Plan Beneficiaries (see program information - above) NOT ELIGIBLE
Citizens whose health services are covered under First Nations & Inuit Health; Health Canada, Department of Veteran Affairs; Royal Canadian Mounted Police; Canadian Forces; Worker's Compensation or Federal Penitentiaries are not eligible for Drug Plan benefits under Saskatchewan Health.
Encouraging Appropriate Drug Use
The Drug Plan uses a number of activities to encourage appropriate use of drugs:
Use of the claims processing system to perform various edit and assessment checks. Use of Exception Drug Status coverage where drugs are only intended for use in certain circumstances. e.g. products intended for second line use. Provides funding support for: Use of the Drug Plan database for internal and external drug use studies, pharmaco-epidemiological studies, and research projects by outside agencies. Use of product assurance agreements with drug manufacturers. The Drug Plan monitors use of a particular drug to ensure utilization and health outcomes occur as stated in the manufacturers documentation submitted to the Saskatchewan Formulary Committee. Where that does not occur, an intervention may occur and a financial adjustment may be made against the manufacturer. The Trial Prescription Program started as a joint project with the Saskatchewan College of Pharmacists and later became a benefit of the Drug Plan. The pharmacist is encouraged to dispense a seven or ten day supply for the initial prescription of certain drugs, monitor the effect on the patient and if the outcomes are positive, dispense the full prescription as directed by the physician. There is no additional cost to the resident for this service. Pharmacy Claims Processing
An online computer network transmits prescription information from the pharmacy to the central computer where it is checked against stored data to determine whether it can be approved for payment. Checking includes: is the drug a benefit, does the beneficiary have health coverage and the type, is the quantity dispensed within appropriate levels, is the number of prescriptions for the beneficiary within limits, is the prescription a duplicate or possible duplicate of another dispensed prescription, is the prescriber authorized, are the unit costs within limits. The prescription claim is adjudicated and cost information is then transmitted back to the pharmacy, detailing the consumer share and Drug Plan share.
Other activities that are a part of claims processing include: Special Support assessment; reimbursement to beneficiaries for prescriptions purchased out of province; selecting certain approved claims for verification with the beneficiary; and providing assistance to pharmacies and consumers via toll-free telephone lines.
Pharmacy Reimbursements
At March 31, 2008, there were 374 pharmacies providing Drug Plan eligible services.
According to the Agreement between Saskatchewan Health and pharmacy proprietors, the prescription cost is calculated by adding the acquisition cost of the drug material, the submitted mark-up and dispensing fee (up to a maximum).
The maximum dispensing fee is $8.63 (effective October 1, 2007). The maximum mark-up allowance calculated on the prescription drug cost is: 30% for drug cost up to $6.30, 15% for drug cost between $6.31 and $15.80 and 10% for drug cost of $15.81 to $200.00, and a maximum mark-up of $20.00 for drug cost over $200.00.
For urine-testing agents the pharmacy receives acquisition cost along with the mark-up and a 50% mark-up in place of the dispensing fee. For insulin, the pharmacy receives acquisition cost plus a negotiated mark-up.
For the Saskatchewan Children's Insulin Pump Program, the Drug Plan will reimburse up to the formulary list price for insulin pump supplies. If the pharmacy retail price is less than the formulary list price, pharmacies should submit the RETAIL cost in the acquisition cost field. The Drug Plan system will not allow for a mark-up or a dispensing fee.
Prescription Quantities
The Drug Plan places no limitation on the quantities of drugs that may be prescribed. Prescribers shall exercise their professional judgment in determining the course and duration of treatment for their patients. However, in most cases, the Drug Plan will not pay benefits or credit deductibles for more than a 3-month supply of a drug at one time.
The pharmacist may charge one dispensing fee for each prescription for most drugs listed in the Formulary. If a prescription is for a duration of one month or more, the pharmacist is entitled to charge a dispensing fee for each 34 day supply, however the Agreement does not prohibit the pharmacist from dispensing more than a 34 day supply for one fee. The Agreement also contains a list of Two-Month and 100-day supply drugs. Prescribing and dispensing should be in these quantities once the medical therapy of a patient is in the maintenance stage, unless there are unusual circumstances that require these quantities not be dispensed.
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© Copyright 2000, Government of Saskatchewan
Last updated: April 1, 2009
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