Over the past few years, workplace benefit plans in Ontario have been witnessing the situation of costs of generic drugs mounting drastically.

It is being believed that makers of the medicine were responsible for the elevation. It was elaborated by Ms. Barbara Martinez that the price rise was due to the rebates that were paid to the pharmacy companies by the generic firms.

In facts provided by the Federal Competition Bureau and others, this is similar to the systems in other provinces as well and the inflation in the generic prices in Canada has also been ignited by the rebates.

Earlier this month, in order to cope up with the trouble, the Ontario government revealed some reforms and therefore, the province banned rebates. The rebates are officially called professional allowances and it is expected that these reforms will incline the pharmacy reserves by $800-million annually and the generic prices will get lesser by this.

These reforms are being closely inspected across the nation, but according to some experts, the Government reforms are very strict decisions and can generate “unintended consequences”.

The whole issue revolves around the expectation that generic drugs will put in more efforts to dwell the growing prices of prescription medicine, which at present is at $22-billion annually in Canada.