'Bold move' saves employers costs by taking on work that would normally be done by a separate firm, says expert
TELUS Health will reimburse workers for certain drug prescriptions only if they fill them through the company's own virtual pharmacy, according to a CBC report.
The company's "virtual pharmacy” is now the "preferred provider" for the group prescription drug plan, a policy that took effect on March 1, according to the report.
The policy "is in line with the standard approach" of other pharmacy companies and "offers a range of advantages, including enhanced coinsurance and reduced dispensing fees,” the company told CBC via email.
"In addition, we place great importance on involving our employees in testing and using our services, as their valuable feedback allows us to continuously enhance our offerings for our clients."
Previously, Manulife also made a policy change stating that coverage of certain specialty prescription drugs will only apply at Loblaw-owned pharmacies.
Steve Morgan, an expert in pharmacare systems at the University of British Columbia, described TELUS Health’s new policy as “a bold move,” according to the CBC report, saying it saves the employer costs by taking on work that would normally be done by a separate firm within the supply chain.
"You think you're dealing with different entities at different levels of your interaction with the system," he said. "But in fact, all of those entities are owned by the same player."
However, TELUS Health’s new rule does not sit well with numerous stakeholders.
Quinn Grundy, a researcher who studies the activities of corporations in relation to health care at the University of Toronto, said that moves such us as this do not put patients’ wellbeing as the top priority.
"Because they are also commercial entities, there is no guarantee that those strategies are putting patient or public interests first," she said in the CBC report.
"There's now a situation where the employer's concerns around cost and revenue are driving that decision, rather than the relationship between a patient and their health provider."
CBC also noted that employees expressed frustration that they would no longer be able to choose where they filled certain prescriptions unless they paid out of pocket. They also fear that they could miss deliveries of vital medications by using the virtual pharmacy, especially those who live in rural areas.
Kent Wilson, owner and manager of Cornerstone Pharmacy, said via LinkedIn: “Does this mark the beginning of the end of local independent community pharmacies?”
The Manulife-Loblaw deal previously received backlash, and the federal government started reviewing the deal.
“They don't get the message. We want more competition in this country,” Francois-Philippe Champagne, industry minister, previously told reporters, according to CP24.
That led to the insurance firm to backtrack and say it will cover specialty drugs at any pharmacy, less than one week after announcing its exclusive deal.
