Dispensing Fees Exceed Drug Costs

Pharmacies in Ontario charged seniors in nursing homes $250 Million in $2 copayment fees over 5 years.   For seniors living in the community, these co-payment fees are typically waived.   Pharmacies who service Long Term Care homes (nursing homes) are not required to charge these co-pays.     The Toronto Star wrote an article on this topic and showed that families can request to not pay these co-payments.

The overall issue is that roughly one billion in dispensing fees were paid to pharmacies over five years to dispense drugs that cost 800 million.  Part of the issue is the practice of weekly dispensing for all residents in nursing homes versus monthly.    While there are good arguments for this for some residents (frequent changes in dosages and drugs and desire to not waste medication) the data shows that most residents do not require it.    Dispensing fee’s gain greater scrutiny for nursing home residents given efficiency  / volume gains for pharmacies compared to their retail operations where they must speak with each family about each prescription.   Pharmacies servicing nursing homes deal only weekly with medical staff at the nursing home.

While it is good that seniors benefit from the Ontario Drug Benefit Plan, clearly there is room for improvement to make it more efficient and reduce dispensing charges for seniors.

Read Toronto Star Article on Dispensing Fees in Nursing Homes