Ever wondered about the breakdown of charges on your pharmacy receipt? Among them, the “F” code stands for pharmacy dispensing fees. These fees are for the costs associated with preparing and distributing medication. This also includes advice from the pharmacist, managing the inventory, and general admin tasks.
Finding the lowest dispensing fee
The pharmacy with the lowest dispensing fee can vary based on location and ongoing promotions. In general, big box retailers like Walmart and Costco tend to offer lower fees compared to chain pharmacies. It’s always best to check with your neighbourhood drug store directly. You can also check out this Drug Dispensing Fees chart that’s updated every quarter.
Coverage of pharmacy dispensing costs
How much dispensing fee coverage you have depends on where you live in Atlantic Canada, and your specific health insurance plan. Provincial health insurance plans typically cover some prescription drug costs. You might still have to pay out-of-pocket expenses. Private insurance plans may offer additional coverage, so it’s a good idea to review your health insurance policy details.
Dispensing fee coverable by province
• Drugs on the Manufacturer List Price (MLP) List: Up to $11.00
• Drugs on the Maximum Allowable Price (MAP) List: Up to $11.00
• Extemporaneous preparations (compounds): Up to $16.50
• Methadone for chronic pain: Up to $11.00
• Drugs for opioid dependence (e.g., methadone, buprenorphine/naloxone): Up to $9.50
• Drug cost: $0.00–$49.99 > dispensing fee $11.96
• Drug cost: $50.00–$249.99 > dispensing fee $23.93
• Drug cost: $250.00+ > dispensing fee $50.00
For the 65Plus Plan:
• Drug cost: $0.00–$249.99 > dispensing fee $12.00
• Drug cost: $250.00+ > dispensing fee $40.00
Tips for saving on dispensing fees
To reduce costs when filling prescriptions, consider these strategies:
- Compare pricing among pharmacies, as fees can vary.
- Opt for a larger supply for medications you regularly use to save on refill fees.
- Inquire about generic options, which are often more affordable and equally effective.
- Consult your insurance provider for coverage details and potential quantity limits.
Tax deductibility of dispensing fees
In Canada, pharmacy dispensing fees are generally not tax deductible. They fall into the category of personal healthcare expenses. However, there may be circumstances where medical expenses like these could qualify for tax credits or deductions. Seek advice from a tax professional for personalized guidance.
Take control of your healthcare coverage
Understanding pharmacy dispensing fees and finding ways to lower costs is one way to focus on your health and financial well-being. For expert guidance on health insurance coverage, talk to one of our health insurance advisors today.