City of Toronto staff’s high claims on ED drugs raise fraud questions

The City of Toronto has four times the occurrence of claims for erectile dysfunction drugs than other employers with benefits plans provided by Manulife Financial, Toronto’s auditor general Beverly Romeo-Beehler said at an audit committee meeting on Friday. While the erectile dysfunction drug Cialis was the fourth most claimed drug among city employees, it was 31st among other Manulife clients.

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In 2015, the city paid out $1.9 million for erectile dysfunction medications, assistant auditor Jane Ying said. That includes 37 employees who claimed more than $3,000 for these drugs and five employees who claimed more than $5,000. There were also 16 employees who claimed 13 months’ worth of the drug Cialis, which patients take daily, during a 12-month period, and 65 employees who, also during a 12-month period, claimed between 180 and 360 tablets of erectile dysfunction drugs taken as needed.

Introducing a $500 cap per claimant would save the city $750,000 per year, Ying said.

“Presumably the one person is not consuming that amount themselves unless they’re going to the Guinness Book of World Records or something,” said Councillor Mary-Margaret McMahon. “So something else is happening with the drugs. How do we determine that? What’s the recourse for employees selling drugs?”

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If auditors or city staff find a potential incidence of fraud, they notify the police, Romeo-Beehler replied. Any suspect physicians or pharmacists would be referred to their respective regulatory bodies.

The audit also found the city’s claims for narcotics are twice the Manulife average. Thirty-two employees claimed 19 months’ to 6.7 years’ worth of Fentanyl patches in a 12-month period, and 237 employees filled prescriptions for controlled substances at different pharmacies within seven days.

The report stressed these claims, along with the erectile dysfunction medication claims, could be medically justified, but city staff should follow up with Manulife to ensure they are.

“It’s an important matter not just for the plan but from a society perspective to make sure the claims are legitimate,” Romeo-Beehler said.

Read: Up to 600 TTC employees involved in benefits fraud