Thorpe Benefits, August, 2004

Canadians are buying, taking and spending more on drugs than ever before, making pharmaceuticals the second highest expenditure in the Canadian health care system (hospital funding holds the number one position). Much of the increase can be traced to growing consumer demand.

Insurance companies use “experience ratings” to determine what premium a group plan will pay at the time of renewal. Depending on the size of the group and the type of plan, it might only take a single claim for an expensive breakthrough drug to throw those experience ratings out of whack and put the group’s renewal premiums out of reach. Consider that some new therapies can cost as much as $20,000 to $40,000 per year, per patient. And depending on the illness, those costs can be ongoing, repeating each year. Even with the savings achieved through lower absenteeism, higher productivity, fewer hospital stays and other savings, the impact on the drug plan’s “experience” could result in significant health premium increases at time of renewal.

Did you know that two-thirds of Canadians are loyal to one pharmacy for all of their pharmacy needs?

Consumers choose location as the most important factor when deciding which pharmacy they will use...price isn't important. The list below shows the differences in dispensing fees among pharmacies. Unless cost containment measures are implemented into your group plan, rates from Insurance Carriers will reflect your plan accordingly.

To find out more about possible plan design options your group may have, feel free to contact Thorpe Benefits.