Prescription drug cost-saving plan to include Ottawa

The federal government says it willjoin the provinces and territories in bulk-buying prescription drugs to obtain lower prices.

The federal drug plan includes Canada's military, veterans,the RCMP,First Nations and Inuit, federal inmates and refugees.

Health Minister JanePhilpottannounced Tuesday the federal drug plan will participate in an alliance thatnegotiates to lower prices for brand-name drugs.

So far, the pan-Canadian Pharmaceutical Alliance has completed more than 89 negotiations on brand-name drugs and achieved price reductions on 14 generic drugs, resulting in combined savings of more than $490 million annually.

"I am impressed and encouraged by the cost savings that the pan-Canadian Pharmaceutical Alliance has achieved to date,"Philpott said in a release.

British ColumbiaHealth Minister Terry Lake saidOttawa's participation in the alliance will increasedrug purchasing power for provinces, territories and the federalgovernment.

By combining their negotiating power, the governments hope to save money for publicly funded drug programs, increase access to clinically effective treatments and make prices and coverage more consistent.

The country's ministers are gathering in Vancouver this week to discuss issues such as chronicdiseases, drug costs and funding formulas.