The Government of British Columbia has introduced legislation setting out a framework for generic price reductions and restrictions on manufacturer incentives, but the details are to be developed later this year through regulations. The new Pharmaceutical Services Act gives the government authority to set pricing and to regulate the types of incentives that pharmacists may receive from drug companies. “Incentives are put under one umbrella that appears to include rebates, cash-back and ordinary commercial terms,” says Geraldine Vance, executive director of the British Columbia Pharmacy Association (BCPhA). “The health minister has indicated he wants to ban rebates, but until the regulations are developed, we won't know for certain.” The province's new legislation comes after it cancelled an earlier agreement with pharmacy that failed to produce the drug-plan savings the government had expected. That agreement set generic prices at 35% of brand-name prices, but the BC government now plans to lower that level to 25%. “If you have an imposition of change by the government, you may well have some unintended consequences in terms of instability for pharmacy” BC pharmacists face a period of uncertainty as the regulatory process unfolds and efforts are made to work out pharmacist compensation. “We are concerned about the lack of clarity in the legislation about a formal relationship between pharmacy and the government,” says Ms. Vance. The legislation says the health minister may establish advisory committees on generic pricing and incentives but he is not required to do so. “We believe that issue should be the first one sorted out, whether by regulation or simply by a declaration by the minister. If he doesn't commit to a formal advisory process, then you have an opportunity for some pretty sweeping ministerial discretion.” The other major issues for the BCPhA are compensation for lost revenue — including from any rebate bans — and a reasonable transition period to allow pharmacists to adjust to the new policy. “Pharmacy has to be involved in that discussion,” Ms. Vance says. “If you have an imposition of change by the government, you may well have some unintended consequences in terms of instability for pharmacy.” The next step, says Ms. Vance, is 1 or 2 days of government consultations with the BCPhA in July. She says the association is urging the government to come back to pharmacist organizations for further feedback, once the regulations are drafted.