Health Minister Margaret MacDiarmid says the new regulation will take effect next April and will reduce generic drugs first to 25 per cent of the cost of their brand name equivalents by April, 2013.
"B.C. families will soon notice that they pay less at the till when they fill their prescriptions," MacDiarmid said in a statement issued on Friday morning.
"Additionally, these price reductions will result in savings to our government that will help enhance patient care for seniors and families."
In 2010 the B.C. government cut the price of generic drugs from 65 per cent of the brand name price to 35 per cent.
Lowering the cost of generic drugs was initially resisted by the pharmacy sector, but the B.C. Pharmacy Association is now accepting the move, saying the government listened to its concerns about phasing in the new costing plan.
Kenneth G. Martin, president and CEO of Pacific Blue Cross, said the new regulation brings B.C. in line with other Canadian jurisdictions.