Private drug plans offer better coverage

Canadians insured under private drug plans have significantly better access to new medicines than those who are only covered under public plans, according to a new study from the Canadian Health Policy Institute (CHPI).

Using data from Health Canada and IMS Brogan, CHPI researchers compared access to new medicines for patients covered under each of the 11 federal and provincial public drug programs across Canada, as well as between public and private sector drug plans.

The results showed a range of coverage from plan to plan, and differing depending on jurisdiction. Some plans provide full and immediate access to the latest and most advanced medicines available; others cover a small fraction of drugs certified by Health Canada.

Averaged across all federal/provincial public plans, only 20.5% of all the new drugs approved by Health Canada from 2004 to 2011 were insured, and patients waited an average of 659 days for insured access. Between jurisdictions, Quebec had the most generous public insurance coverage for new drugs (38.9%); Manitoba, the least generous (12.6%). The wait for publicly insured access was shortest in Quebec (430 days) and longest in Prince Edward Island (908 days).

In a nationwide private-public plan comparison, 81% of new drugs were insured by at least one private plan compared with 47% by at least one public plan, and private plan members waited an average of 127 days for insured access, compared with 467 days for those covered under public plans.

“Good drug insurance should provide financial protection from the unexpected and unaffordable cost of necessary medications should you or your family become ill,” said CHPI CEO Brett Skinner. “Our study helps to raise public awareness about differences in the insurance coverage provided to patients under Canada’s various drug insurance plans.”

In Canada, the federal government operates five separate public drug plans covering about one million people; the provinces and territories separately operate their own public drug plans for eligible residents covering about 10.3 million people in total. More than 23 million Canadians have private drug insurance, mostly as a benefit obtained through employment. An estimated 700,000 Canadians have no drug coverage.