Drug Pooling Agreement Helps Ensure Drug Benefit Plan Sustainability
Posted Date: April 3, 2012
Empire Life is proud to be participating in the drug pooling agreement, announced by the CLHIA. Listen to Empire Life President and CEO Les Herr’s comments in this video.
Listen to CEO Les Herr talk about this "giant step forward".
Empire Life is proud to be participating in the industry drug pooling agreement, announced by the Canadian Life and Health and Insurance Association (CLHIA). We have been a strong voice at the table throughout the development of this groundbreaking agreement.
This agreement calls for participating carriers to pool eligible drug claims in excess of a stipulated amount, and set customer premiums without including these pooled claims. This applies to fully insured group plans only.
What it means:
- Employers with insured business will have access to more sustainable drug plans. It will also be simpler for them to move their group benefits to other carriers even if they have a recurring high cost drug claim
- Employees will be less likely to lose coverage from employer-sponsored plans due to high cost drug claims
- Carriers will be able to spread the cost of very high cost, recurrent drug claims across the industry
This agreement will primarily benefit small and medium-sized businesses, which typically do not have the financial resources to absorb a significant increase in their insurance premium due to high cost drug claims. It is a giant step forward in ensuring the sustainability of drug benefit plans and helping protect Canadians who face the financial burden of high cost drugs.