What is a Dispensing Fee?
Dispensing fees is the name for money you’re charged when you pick up your prescription at the pharmacy. Essentially it covers the cost of the time it takes to prepare and distribute your medication to you, as well as inventory management, admin tasks, and those chats with the pharmacist when they explain how to take the prescription safely. Dispensing fees in Ontario vary based on the pharmacy you go to, and your health insurance coverage.
Who has the Cheapest Dispensing Fee?
We all want to save a little bit of money! Currently, dispensing fees can range from $4.49 to $12.99. While they do fluctuate, generally big-box retailers like Costco and Walmart offer the lowest dispensing fees in Ontario. Chain pharmacies like Rexall, Shoppers Drug Mart, and Pharmasave tend to be on the higher end. This drug dispensing fee survey is updated quarterly.
Does the Ontario Drug Plan Cover Dispensing Fees?
While the provincial drug plans often provide coverage for cost of prescriptions, you’ll likely still need to pay dispensing fees. These vary depending on where you live. For Ontarians on the Ontario Drug Benefit program, dispensing fees can be anywhere from $8.83 to $13.25 although some portion of them may be covered. Pharmacies are encouraged to supply 100 days of medication for chronic conditions to help minimize the dispensing costs.
Are Dispensing Fees Covered by Health Insurance?
The short answer is, it depends. Some group or personal health insurance plans may cover prescription dispensing fees in addition to the cost of the prescription itself. Read through your health insurance policy, and if you aren’t sure, contact your provider. It’s a relatively small cost, but it can add up, especially if you have a chronic condition that requires long term medication.
Save Money on Dispensary Fees
The easiest way to save on dispensing fees is simply to shop at a lower cost pharmacy. Because fees vary, you may want to call around to those in your area and check current rates. Cost isn’t everything though. You may save a few dollars, but a smaller independent pharmacist may provide advice and customer service that makes up the difference.
For prescriptions that you fill regularly, ask for a 3-month supply. The dispensing fee is charged each time the prescription is filled, so you’ll be paying the fee 4 times per year instead of 12. 100 days is the longest period for which a prescription can be filled. As well, you may want to talk to your physician to see if your dosage amount is likely to change in the near future.
Lastly, ask about generic versions of your prescriptions. Generics contain the same active ingredients to their patented counterparts and are just as effective, but they are usually much cheaper than the brand name versions. Take note that the pharmacies charge the same dispensing fees for both generic and brand name drugs, however, your personal health plan may provide different coverage.
Can You Deduct Dispensing Fees on Your Taxes?
Pharmacy dispensing fees are not generally deductible on personal income tax. They are considered personal expenses related to health care. However, there are exceptions where certain pharmacy-related costs may qualify for the medical expense tax credit. Speak with your accountant or tax professional to see if your situation qualifies.
Prescriptions and their dispensary fees are just one aspect of personal health care. MMHI offers custom health insurance plans for Ontarians and we’re here to help. Contact one of our health insurance advisors if you have any questions, or to get a quote.