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Dispensing Fee

A dispensing fee is the professional service charge that a pharmacy adds to the cost of a prescription drug when it is filled. This fee covers the pharmacist’s time, expertise, and services such as verifying the prescription, reviewing potential drug interactions, preparing the medication, and providing counselling on proper use. Each pharmacy sets its own dispensing fee, which can vary based on location, prescription type, and the pharmacy’s policies.

In most health insurance plans, the dispensing fee is considered part of the eligible prescription cost and is reimbursed according to the plan’s drug coverage rules. However, some plans cap the amount reimbursed for dispensing fees, meaning you pay the difference if the pharmacy charges more than your plan allows. For maintenance medications, insurers often encourage using 90-day supplies or preferred pharmacies to minimize repeated dispensing fees.

Example:

If a prescription costs $40 for the medication and the pharmacy adds a $10 dispensing fee, the total charge is $50. If your plan covers 80 percent of eligible drug costs, the insurer reimburses $40, and you pay $10 out of pocket.

What to Watch For:

Compare dispensing fees among pharmacies, as they can vary widely. Some plans limit reimbursement to a maximum fee per prescription, such as $8 or $10. If your plan includes a preferred pharmacy network, filling prescriptions there may eliminate or reduce your out-of-pocket costs. Always ask your pharmacist for a detailed receipt that separates the drug cost from the dispensing fee for accurate claim submission

Related Terms

Deductible

A deductible is the fixed dollar amount you must pay each benefit year before your plan starts reimbursing eligible expenses. Think of it as your yearly participation in costs - once met, your plan covers claims according to its coinsurance. Some individual health plans in Canada have no annual deductible, while others apply one only to certain benefits (often $25–$100 per person).

Dental Accident

A dental accident is a sudden, unexpected event that causes injury to the mouth, teeth, or jaw, resulting from an external force rather than from decay, chewing, or normal use. Examples include being struck in the face, falling and hitting your mouth, or suffering an impact during sports. Dental accident coverage helps pay for the repair or replacement of natural teeth damaged in such incidents.

Dental Fee Guide

A dental fee guide is a provincially issued schedule that lists the standard or recommended prices for dental procedures. Each province and territory in Canada publishes its own guide annually, outlining suggested fees for everything from cleanings and fillings to crowns and dentures.

Dental Insurance

Dental insurance is a type of health coverage that helps pay for the cost of preventive, basic, and major dental services. It is designed to make oral care more affordable and to encourage regular checkups that prevent costly procedures later on. Dental insurance is offered through group employee benefits, individual plans, or conversion plans for people leaving workplace coverage.

Dentist

A dentist is a licensed healthcare professional who diagnoses, treats, and helps prevent conditions affecting the teeth, gums, and mouth. Dentists play a key role in maintaining oral health through preventive care, restorative treatments, and patient education. Common services include cleanings, fillings, crowns, root canals, extractions, and oral examinations.

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