How Canada’s Pharmacare Bill Could Impact Employee Group Benefits

A new bill was recently introduced – Bill C-64, An Act respecting pharmacare (Pharmacare Act) — that could change the healthcare landscape in Canada. The bill, aimed at paving the way for a national pharmacare program, has sparked discussions across the country – and the implications of this legislation extend beyond healthcare policy, particularly for employers and their employee group benefits considerations.

What is Bill C-64?

Bill C-64 proposes the “foundational principles” for the first phase of national universal pharmacare in Canada to provide universal, single-payer coverage for a number of contraception and diabetes medications. The bill aims to address longstanding gaps in prescription drug coverage, signalling a potential shift in the landscape of employee benefits and healthcare offerings.

An estimate from the Conference Board of Canada indicates that more than 97 per cent of Canadians have at least some coverage, and the Government of Canada says roughly 80 per cent of us have adequate prescription-drug coverage.

Some concerns have been raised about the potential impact on existing benefit plans, including apprehensions about the bill putting workplace benefits plans at risk. This raises important considerations for businesses regarding the future of employee benefits and the role of private insurance in the evolving healthcare landscape.

Potential Impact

A pharmacare plan for birth control and diabetes medication could impact employer group benefits offerings in several ways, including:

• Cost: If a pharmacare plan covers medications currently included in an employer’s group benefits plan, it could potentially reduce the employer’s overall healthcare costs.
  
• Plan Design: If specific medications are covered under a pharmacare plan, employers may choose to reallocate resources within their group benefits plans to focus on other areas of healthcare coverage that are not covered by the pharmacare plan.
  
• Employee Expectations: Employees may expect employers to adjust offerings in response to the availability of a pharmacare plan and may question any duplicate coverage.
  
• Competitive Advantage: By offering comprehensive group benefits plans that complement the coverage provided by the pharmacare plan, employers can continue to attract and retain talent while demonstrating their commitment to employee health and well-being.

Staying Informed

As the government negotiates with provinces and territories, employers will need to stay informed and proactive in managing any potential changes to healthcare policy and their benefits offerings.

Contact us today so we can help you navigate the evolving healthcare landscape with confidence and provide guidance on how to create comprehensive group benefits offerings that meet your employees’ needs.

Suggested Reading

Ottawa unveils national pharmacare plan that covers diabetes, contraception to start

Additional Resources

Government of Canada Introduces Legislation for First Phase of National Universal Pharmacare