Group Insurance Controlling Drug Care Costs

Posted on February 7, 2010 and updated November 10, 2010 in Group Benefits, Insurance Types, Life Insurance Canada News 2 min read
Okko Pyykko Stopping Motion
Prescription drugs
on the rise
Credit: Okko Pyykko

Drug costs are on this rise, According to an article in the Globe and Mail, government subsidy has tripled and the public cost has doubled. Good thing drug plans are the most significant cost component of a group insurance plan.

The following four variables can help control the cost of drug plans and keep your company’s group premiums in check:

1. The deductible – Employers and employees can share some of the cost.

2. Co-insurance – Different drugs or drug groups can be reimbursed at different percentages to help control costs.

3. Exclusion -  Certain drugs or classes of specific drugs can be excluded.

4. Synopsis – Have your advisor create a synopsis of the policy, so you can understand, and manage your drug plan for maximum effectiveness and profitability. Some insurance companies can provide statistical reports that include details on the most commonly used drugs. It is important to ensure the reports comply with federal and provincial legislation as well as CLHIA guidelines on the confidentiality of information.

For more details on group insurance and controlling group insurance costs, feel free to visit our Group Benefits Online Quote Page. You can also contact us at 1866-899-4849.

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