Insurers to split cost of expensive drug claims

Agreement should reduce risk of employers seeing premium spikes, reducing coverage
By Amanda Silliker
|Canadian HR Reporter|Last Updated: 05/07/2012

In an effort to increase drug plan sustainability, Canadian insurers are coming together to split the cost of the most expensive drug claims, according to the Canadian Life and Health Insurance Association (CLHIA).

In April, the association launched a drug-pooling framework to protect fully insured private drug plans from the full financial impact of high-cost drugs. Twenty-four insurance companies across Canada, which collectively represent 100 per cent of the supplementary drug market, have committed to joining the framework, said CLHIA.

“It really is a win-win for everybody that is impacted by this,” said Janet Jackson, vice-president of group marketing at Kingston, Ont.-based Empire Life, one of the insurers participating in the initiative.