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I think it’s very prudent for the insurance companies to be … saying ‘Unless I know there’s a medical reason, I’m not going to pay what is a lot higher cost

Under the new policies ushered in this year, most patients would have to forego those discount coupons, accept the generic and pay any deductible.

Provincial-government drug plans have for some time insisted that pharmacies dispense generics for their patients, but until recently workplace and other private plans have imposed no such restriction.

“It’s something they should have been doing all along,” said Barbara Martinez of Mercer Canada, a consultant who advises group health plans. “I think it’s very prudent for the insurance companies to be … saying ‘Unless I know there’s a medical reason, I’m not going to pay what is a lot higher cost.’ ”

Like his counterparts at Great West, Mr. Jones said patients will still be able to obtain the brand-name version, if they produce a doctor’s form indicating a medical reason for it. They are also free to pay the extra cost themselves to get the branded medicine.

Mr. Jones’s company represents 3.2 million drug plan members and their families. With Great West, the two firms administer about half the country’s private health plans.

To counter the tide of low-price competition, brand-name manufacturers are offering re-imbursement programs in the form of cards, coupons and online offers.

The coupons sometimes indicate the firm will pay the difference between the generic drug and the brand-name. But because the pharmaceutical company is the payor of last resort, the drug plan actually picks up most of the tab, and the drug maker covers only the patient’s share, Ms. Martinez said.