At the end of October, a City of Toronto audit committee meeting revealed that the city has four times the occurrence of claims for erectile dysfunction drugs than other employers with benefits plans provided by its provider Manulife Financial.
While the drug Cialis was the fourth most claimed drug among municipal employees, it was 31st among other Manulife clients, according to Beverly Romeo-Beehler, Toronto’s auditor general.
The audit found that, in 2015, the city paid out $1.9 million for erectile dysfunction medications including 37 employees who claimed more than $3,000 for these drugs and five employees who claimed more than $5,000, according to assistant auditor Jane Ying.
Read: City of Toronto staff’s high claims on ED drugs raise fraud questions
To address the issue, Ying suggested introducing a $500 cap per claimant, which would save the city $750,000 per year.
This week’s online poll asks whether plan sponsors should consider such a cap. Don’t forget to have your say.
Have your say: Should plan sponsors consider a cap on high-cost drug spending?
As for last week’s poll, which asked whether the industry is worried about the U.S. election results this week and its potential impact on the investment climate, nearly three-quarters (73 per cent) of respondents said yes, there’s significant uncertainty and a real potential for the results to have an impact on the markets. The remaining 27 per cent said no, the markets will adjust, regardless of who wins the election.
Editor’s note: Headline changed Nov. 9 to correct that drugs for erectile dysfunction aren’t in the high-cost category.