New Brunswick plans to eliminate private sector obligations related to the Prescription and Catastrophic Drug Insurance Act, says a Towers Watson Client Advisory.
The New Brunswick Department of Health announced last week that it would eliminate the requirement that all residents have drug coverage (i.e., the mandatory coverage requirements) as well as the requirement that private drug plans include minimum terms and conditions.
These requirements would have come into effect on April 1, 2015, under Phase 2 of the act. The government has introduced An Act to Amend the Prescription and Catastrophic Drug Insurance Act (Bill 4) to effect the necessary amendments to the act, and Bill 4 is expected to pass.
“Many plan sponsors with plan members (including active and retired members) in New Brunswick have already begun working to ensure plan terms and administrative processes will comply with the Phase 2 requirements under the Act,” notes the Advisory.
“In light of the bill and the government’s announcement, plan sponsors should cease any further activities in this regard.
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