Health Minister Mark Holland dismissed concerns raised by Canadian insurers that the proposed pharmacare bill would lead to widespread reductions in workplace drug benefits, calling the claims "a bunch of malarkey."Blacklock's Reporter says he urged the Senate to pass the bill by Thanksgiving, brushing off warnings that it could prompt employers to scale back existing coverage.The Canadian Life and Health Insurance Association (CLHIA) testified before the Senate social affairs committee, warning that “tens of thousands of employers” are reconsidering workplace benefits in light of Bill C-64: An Act Respecting Pharmacare. The bill proposes taxpayer-funded coverage for some medications, including diabetes and contraception drugs, and aims to move toward a universal pharmacare system, though it sets no specific timeline.Stephen Frank, CEO of the CLHIA, told senators the bill could have significant unintended consequences. “For the majority of Canadians, this legislation, as it’s currently written, will eliminate existing prescription drug coverage paid for by employers,” he said, adding that it could lead employers to drop coverage for medications the federal government would now cover.Frank cited concerns from employers, particularly smaller businesses, who might decide to stop offering drug benefits if the government takes over certain costs. “It is already happening. We are getting calls from employers asking whether they should drop these drugs,” Frank said, using an example of a tire factory in Kelowna considering cutting diabetes drug coverage due to the proposed law.However, several senators challenged the assertions. Sen. Flordeliz Osler (Manitoba) asked whether insurers had reached any agreements with the federal government to prevent private plans from being downgraded. Frank clarified that while insurers provide coverage, it’s ultimately employers who decide what benefits to offer.Holland strongly rebuked the CLHIA’s warnings. “There’s a lot of fear-mongering that they’re going to lose insurance, which is a bunch of malarkey,” Holland told reporters. He reiterated that no Canadians should lose their workplace benefits if the bill becomes law. “To drop your plan because a portion of medicine is covered, it’s just not logical, right? No company would do that,” Holland argued.He also emphasized that Bill C-64 covers only a small portion of medications, meaning that employers would still offer broader coverage. “Employers offer much more coverage than what we’re contemplating here,” said Holland. He assured the public that the bill wouldn't prompt significant changes to existing benefit plans, adding, “This is a very, very tiny sliver of what employers offer.”The House of Commons passed Bill C-64 on June 3, and Holland is urging the Senate to approve it soon. "Yes, absolutely," he said when asked if he hoped it would pass by Thanksgiving. He signaled that while some delays could be acceptable, he expected the bill to move forward swiftly.Conservative MPs have also raised questions about the potential impact of the bill, asking whether there are any safeguards to prevent employers from downgrading or canceling existing plans. Holland acknowledged that the bill does not explicitly prevent such actions but insisted that it wouldn't lead to significant reductions in coverage.“We are making sure people have choice,” Holland said, rejecting the notion that workers would lose out on benefits under the new system.
Health Minister Mark Holland dismissed concerns raised by Canadian insurers that the proposed pharmacare bill would lead to widespread reductions in workplace drug benefits, calling the claims "a bunch of malarkey."Blacklock's Reporter says he urged the Senate to pass the bill by Thanksgiving, brushing off warnings that it could prompt employers to scale back existing coverage.The Canadian Life and Health Insurance Association (CLHIA) testified before the Senate social affairs committee, warning that “tens of thousands of employers” are reconsidering workplace benefits in light of Bill C-64: An Act Respecting Pharmacare. The bill proposes taxpayer-funded coverage for some medications, including diabetes and contraception drugs, and aims to move toward a universal pharmacare system, though it sets no specific timeline.Stephen Frank, CEO of the CLHIA, told senators the bill could have significant unintended consequences. “For the majority of Canadians, this legislation, as it’s currently written, will eliminate existing prescription drug coverage paid for by employers,” he said, adding that it could lead employers to drop coverage for medications the federal government would now cover.Frank cited concerns from employers, particularly smaller businesses, who might decide to stop offering drug benefits if the government takes over certain costs. “It is already happening. We are getting calls from employers asking whether they should drop these drugs,” Frank said, using an example of a tire factory in Kelowna considering cutting diabetes drug coverage due to the proposed law.However, several senators challenged the assertions. Sen. Flordeliz Osler (Manitoba) asked whether insurers had reached any agreements with the federal government to prevent private plans from being downgraded. Frank clarified that while insurers provide coverage, it’s ultimately employers who decide what benefits to offer.Holland strongly rebuked the CLHIA’s warnings. “There’s a lot of fear-mongering that they’re going to lose insurance, which is a bunch of malarkey,” Holland told reporters. He reiterated that no Canadians should lose their workplace benefits if the bill becomes law. “To drop your plan because a portion of medicine is covered, it’s just not logical, right? No company would do that,” Holland argued.He also emphasized that Bill C-64 covers only a small portion of medications, meaning that employers would still offer broader coverage. “Employers offer much more coverage than what we’re contemplating here,” said Holland. He assured the public that the bill wouldn't prompt significant changes to existing benefit plans, adding, “This is a very, very tiny sliver of what employers offer.”The House of Commons passed Bill C-64 on June 3, and Holland is urging the Senate to approve it soon. "Yes, absolutely," he said when asked if he hoped it would pass by Thanksgiving. He signaled that while some delays could be acceptable, he expected the bill to move forward swiftly.Conservative MPs have also raised questions about the potential impact of the bill, asking whether there are any safeguards to prevent employers from downgrading or canceling existing plans. Holland acknowledged that the bill does not explicitly prevent such actions but insisted that it wouldn't lead to significant reductions in coverage.“We are making sure people have choice,” Holland said, rejecting the notion that workers would lose out on benefits under the new system.
