Life and health insurance industry welcomes Ontario move to equal
pricing for prescription drugs
TORONTO, April 7 /CNW/ - The Canadian life and health insurance industry
welcomes the Ontario government's announcement today that they are
moving toward providing the same prices for generic drugs to all
Ontarians whether they are covered by public or private plans or paying
out of their own pockets. "We are very pleased with the government's
announcement that they are reducing prices for generic drugs across the
board, and moving towards equality for all Ontarians," says Frank
Swedlove, President of the Canadian Life and Health Insurance
Association. "This is significant progress in dealing with the high cost
of generic drugs in Canada."
Life and health insurance companies deliver the substantial majority of
Canada's private drug insurance plans and paid $4.1 billion in drug
benefits to Ontario workers in 2008. Private plans are predominantly
group plans purchased on a voluntary basis by employers, unions,
professional organizations or other affinity groups and are designed to
complement the public health system. They provide financial resources
for health services that are not covered, or not fully covered, by
public health care and therefore play an important role in reducing
financial pressures on the public system. Prescription drugs represent
60 to 80 per cent of the costs of supplementary benefit plans.
The Canadian life and health insurance industry provides a wide range of
financial security products including life insurance, annuities
(including RRSPs, RRIFs and pensions) and supplementary health insurance
to about 26 million Canadians and their dependants. Established in 1894,
the CLHIA is a voluntary association whose member companies account for
99 per cent of Canada's life and health insurance business.