Canada's New Pharmacare Act: 3 Key Impacts on Your Group Benefits Plan

1. Public Coverage Supersedes Private Plans for Specific Medications

With the implementation of the Pharmacare Act, the federal government now provides universal coverage for select diabetes medications and contraceptives. This means these specific drugs are no longer covered under private group health plans. Employers must adjust their benefits offerings accordingly to avoid duplication and ensure compliance with the new regulations. ​

2. Opportunity to Reallocate Benefits Budget

The shift of certain drug costs to the public system may result in reduced expenses for employer-sponsored health plans. This presents an opportunity to reallocate resources towards other areas of employee benefits, such as mental health services, dental care, or wellness programs. Enhancing these aspects can improve employee satisfaction and retention. 

3. Navigating Uncertainties in Future Coverage

While the current phase of the Pharmacare Act covers specific medications, the future scope of the program remains uncertain. Employers should stay informed about potential expansions of public drug coverage, as this could further impact private benefits plans. Proactive communication with employees about changes and maintaining flexibility in plan design will be key to adapting to this evolving landscape. ​

Conclusion

The introduction of Canada's national pharmacare program signifies a pivotal change in the healthcare system, directly affecting employer-sponsored group benefits. Employers should proactively review and adjust their benefits plans to align with the new public coverage, explore opportunities to enhance other areas of employee health benefits, and maintain open communication with employees about these changes. Staying informed and adaptable will be key to navigating this evolving landscape.​

For personalized guidance on how the Pharmacare Act may affect your organization's group benefits plan, contact Founders Wealth today.