| FROM THE TEAM
The Promise of 2011
The activity in the drug plan management space in Canada is getting much more widespread, and this is great news for Canadian plan sponsors who are tired of promises of cost containment that never seem to materialize in the long-term. There have been some very interesting developments recently that will drive opportunity in 2011:
- A number of companies have followed the lead of groups like Green Shield, Alberta Blue Cross and Medavie Blue Cross who have long employed teams of pharmacists. Sun Life, Manulife, Pacific Blue Cross and Equitable Life have all begun to build pharmacist teams. These investments in resources signal that more key stakeholder groups are paying closer attention to drug plans.
- Pharmacy chains and mail-order pharmacies continue to aggressively look to partner with plan sponsors in a bid to increase market share and minimize the negative economic impact of drug pricing reforms across the country over the past year.
- New, flexible claims processing engines have been added to the marketplace across the country – providing plan sponsors with the ability to get creative with their plan designs and implement changes that contain costs without adversely impacting member health or eroding the value of their plans.
- Pricing discrepancies across Canada, and within provinces, is bringing new opportunity for plan sponsors who are properly positioned to capitalize on the spreads.
All this activity is extremely encouraging. Plans that are well positioned can capitalize on new competition and innovation in the market. The promises of meaningful, sustainable cost-containment and better health outcomes are much more tangible and accessible for plan sponsors actively managing their experience. So far, this market is off to a great start to 2011.
The growing interest in drug plan management has contributed to a busy start to the year at Cubic Health. We presented at the CAPDM Executive Conference, CPBI Fundamental Series, and the TPAAC Board of Directors meeting this past month. We will be presenting at the Conference Board of Canada’s Compensation Research Centre conference in February in Calgary, and at the Benefits & Pension Summit in Toronto in April.
The most exciting analytics development to date in 2011 has been the expanded interest in integrating drug claims and disability claims experiences. The push for these analytics highlights an evolution in how plans are using their own claims data to drive more value out of these investments.
To pass along any comments on Cubic Health Monthly, or to see back issues of our publication, please visit our website at http://www.cubichealth.ca
Best Regards,
Mike Sullivan, RPh, BSP, MBA
President |
