The Canadian Life and Health Insurance Association (CLHIA) has developed a drug pooling agreement to protect employers with insured benefits from the full financial impact of high cost drugs.
In recent years, there has been a significant increase in the number of high cost drug therapies prescribed to patients with chronic illnesses, ultimately increasing the cost of drug coverage plans. As a result, some employers are resorting to restricting access to expensive drugs for their employees. This means that their employees are often left without coverage when they need it most.
In the absence of a nationally sponsored drug program, member companies of CLHIA have been supportive of this newly established drug pooling agreement and see it as a positive step forward for the industry. While this agreement stands to benefit small and medium sized businesses it will also help shield participating employers from the rising costs of high drug claims. This agreement is also expected to allow fully insured employers to continue offering coverage to their employees even with instances of recurring high cost drug claims.
Moreover, with this agreement in place, employers will be assured of a more financially sustainable drug plan and insurers will be able to spread the cost of high cost drugs amongst participating companies. On the whole, we believe this proactive initiative will ensure comprehensive drug coverage remains affordable and accessible to your clients.
The drug pooling agreement is expected to take effect in January 2013 when a not-for-profit corporation has been established to administer the industry pool. We will provide further details of the drug pooling agreement as they become available.
To read more visit the CHLIA website.
The cooperation expressed in this agreement does not change the pricing structure of your benefit plan from an experienced priced benefit plan, to a pooled priced benefit plan.
If you have any further questions, please contact our office. www.insuranceontheweb.ca
Phone – 250-861-1006
Toll Free – 1-866-861-1006
Email – firstname.lastname@example.org