Term: Therapeutic Interchange Policy

Glossary Definition

Last Updated: 2005-12-05

Definition:

Reimbursing consumers at the rate of the lowest price equivalent drug - a policy that promotes consumer's price sensitivity when selecting among both patented and non-patented products. Uses reference based pricing mechanisms, prescribing protocols, and special authority restrictions to regulate the use of higher priced chemically distinct but therapeutically similar products.

Related terms 

• Prescribing Protocols
• Reference Based Pricing Policies
• Special Authority Policies
• Step-Down Approach
• Step-Up Approach
• Therapeutic Interchange
• Top-Down Costing

References 

• Morgan SG, Kozyrskyj A, Metge C, Roos NP. Pharmaceuticals: Therapeutic interchange and pricing policies. Winnipeg, MB: Manitoba Centre for Health Policy, 2003. [Report] [Summary] (View)