Workplace insurers revamping drug plan coverage: Report
Canadian insurance companies have introduced a plan to spread out the expense of high-priced drug treatments, a move they say will protect workers from the risk of losing employer-sponsored coverage due to cost.
A growing tide of high-priced specialty medicines for arthritis, cancer and other diseases is putting pressure on workplace drug plans, likely producing limits on what they cover, higher premiums and even their disappearance altogether if costs get completely out of hand.
The industry is developing a pooled system of coverage that will allow insurers to exclude the cost of certain high-cost drugs when setting premiums charged to employers. It's these open-ended committments that scare employers, prompting many to rethink the coverage they offer to their employees.
In a recent survey, one-third of companies polled admitted they would drop their drug coverage if premiums jumped by 25 per cent or more, for instance.
Workplace insurers spend a ton on money annually on narcotic painkillers, for instance. But they are also finding that the medications, if used too early in treatment, too frequently or for too long, can drive up associated disability payouts and medical expenses by delaying an employee’s return to work, according to the New York Times.
Earlier this year, the American International Group, a major underwriter said that it would no longer sell backup coverage to workplace insurers, citing rising pain treatment expenses as one reason.
What are the drug benefits like where you work? Are premiums rising? Are there more restrictions than there once were?
By Gordon Powers, MSN Money
Posted by: DFE | Jun 13, 2012 7:44:12 AM
What happened to government setting the prices charged for medicines? In other words, has the greedy United States interest in world domination gotten its way in Canada to the detriment of all Canadians and everything for which Tommy Douglas stood?
Posted by: Bob | Jun 13, 2012 7:57:42 AM
People feel they are owed premium drug coverage by the gov't or private plans. Especially seniors who now expect the best but they never paid into the system enough to warrant such high cost treatments. Make people pay their fair share. Drugs are not free in this country!
Posted by: theguonthecouch | Jun 13, 2012 10:12:29 AM
"Bad backs and other workplace injuries are coming under scrutiny as well." They can just stop right there... most of the physical injuries are caused by workplace labour and now they are trying to mitigate the cost of missed work and medication on to thier eployees??? There isn't a company out there that pays their employees enough to make this make any sense. Not everyone enjoys an airconditoned room with a soft leather ergonomic chair... This country is getting $(#*& up.
Posted by: True Canadian | Jun 14, 2012 3:44:42 PM
Bob - you have to be kidding. Drug plans have been in vogue for far longer than 40 years, which means most seniors have indeed paid into them "enough" to warrant coverage. And the plans are not cheap - as a forced retiree (company shutdown - 30 years contributing) I had to pay over $225 per month at the start of this year for inferior medical coverage than I had at work. And as Im not 65 yet for a few years or so, I dont get the senior advantage either. And these plans do put limits on coverage for ALL benefits, meaning that if something serious happens and I need those $250 pills (yes PER PILL) to deal with my illness, I will soon be either broke or dead. My limit is 1750 per year. I used up more than my limit last year on pills for blood pressure and cholesterol alone, and remember I pay $225/mo which is the "premium plan". I cant afford to get seriously sick, and there are lots of people far worse off than me. Yes our universal medical coverage may operate on me and keep me alive (98% of the time anyways), but the drug costs can kill me anyways in very short order. If this trend continues, I can see (and actually hope) that our government is going to have no option but to allow the Kevorkian-type doctors to aid people with serious illnesses, instead of prosecuting them. Who will be able to afford to be seriously ill for more than 5-10 years with drug costs skyrocketing and coverages and limits plummeting? Tommy Douglas is crying in his grave .....
Posted by: Mr. Negative | Jun 15, 2012 11:56:54 AM
This sounds like another issue of greed and overpriced products. The companies who make these products understand that they can get away with gouging people who need them. They know that people who are sick will pay what ever it costs to take the medication. (greed at it's worse)
Everytime you go to the doctors they prescribe something. The other down side to the drug plan, and any insurance, is there are a lot of people abusing the system. These are the people who make things difficult for people who really need it.
Posted by: StillWorkin' | Jun 17, 2012 10:07:03 AM
It seems to me that there are a few things that could be done here if the insurance companies were truly interested. The biggest single thing though is that insurance companies should be lobbying the Government to allow generics into the country from manufacturers outside. I have arthritis and use celebrex every day as an anti-inflamatory. I cannot get the generic version which is half the cost of the name brand because our Government will not allow it in the country. Go figure......
Posted by: Karen | Jun 17, 2012 1:33:49 PM
The drug companies have turned into parasitic money mongerers and the Canadian govt needs to haul them in line. The drug companies weren't making enough money off of anitbiotics and have been changing the tried and true medications by one ingredient, repackaging it and jacking up the price. They have also turned the 'worried well' in to the 'worried sick' by their marketing of medications. The drug companies also pay-off the scientsts who develope the drugs with these people now being in the 1% . This info is documented research abd can be found online. There is no reason for the increae in medication prices to what we are seeing, other than CORPORATE GREED!!!!
Canadians need to push thier MPs to do something about this fiasco...........it has gone on long enough and is only going to get worse unless something is done.