By Rob Taylor

According to the Canadian Institute for Health Information (CIHI), Canadians spent approximately $33 billion on prescribed drugs in 2018.1 While just over $14 billion of that was covered by the public (provincial) plans, the rest was left to private insurance companies or individuals paying out of pocket.

Canada’s drug prices are the third highest, behind the U.S. and Switzerland.2 So this past summer, in the largest overhaul of Canada’s drug price regime since the ‘80s, the government announced new regulations to significantly lower costs of prescription drugs.3

What this means for the private plans and for individuals is still emerging. Business owners and individuals are nervous when it comes to prescription drug coverage – and rightly so. With new drugs appearing regularly and public plans declining certain coverages, more and more falls on the private plans. And balancing what employees need from private plans with what companies can afford to offer is no easy task.

In many cases, a qualified advisor is well positioned to provide information and advice on prescription drug coverage and to help develop a comprehensive pharmacy program for employers.

Here’s what you should look for in an advisor:

  1. Know the Laws: The final amendments for the Patented Medicines Regulations are intended to be the first step in creating a national pharmacare program across Canada. Your advisor should be able to thoroughly explain the impact of those new laws on your business. They should understand the nature of the risks and what the expectations are.
  2. Accessibility: With any change, there are issues and pitfalls. Your advisor should be able to support you by providing seamless access to the full range of prescription drugs so your employees don’t have to go without essential medications. More than this, your advisor should be able to uncover the right pharmacy plan – based on your employee profile and needs – so your employees can take advantage of the newly reduced drug pricing.
  3. Proactive: With sweeping reforms like this one, there is much at stake, and business owners and employers expect their advisor to fill in the gaps. How will the new rules apply to my employees? Will the mounting legal challenges affect my employees’ ability to access appropriate medications? Your advisor should be ready to address those issues – even before you ask those questions.

Canadian employers don’t have to face the challenges and complexity of an ever-changing pharmacy drug landscape alone. Seeking out a competent, trusted advisor can lower stress levels and increase your confidence in your business’ pharmacy drug program.

Contact your HUB benefits consultant to find out how you and your business can get additional resources and support related to prescription drug coverage programs.

1 Canada’s drug spending growth outpaces that for hospitals and doctors, https://www.cihi.ca/en/canadas-drug-spending-growth-outpaces-that-for-hospitals-and-doctors

2 Health Canada, https://www.canada.ca/en/health-canada/services/health-care-system/pharmaceuticals/costs-prices.html

3 Health Canada says drug pricing changes will save Canadians billions, https://globalnews.ca/news/5746469/health-canada-drug-price-regulations/