Drug plan may impose financial burdens on low-income earners

The deadline for New Brunswicks new prescription drug program is approaching and one health policy expert says mandatory premiums can impose a significant financial burden on low-income earners.

The former David Alward government brought in a mandatory prescription drug plan that was designed to help the roughly 70,000 New Brunswick families whohave no prescription drug coverage and are not eligible for help through social assistance.

New Brunswickers have until April 1 to sign up for the prescription drug plan and some people are starting to voice concerns about the fees associated with the plan.

Steve Morgan, the director of the University of British Columbia's Centre for Health Services and policy research, said there is only one other province with a comparable prescription drug coverage system.

In Quebec, we do know for instance that the premiums charged under their program, which is quite similar, represents a significant financial burden on people with low incomes, Morgan said.

As people scramble to get coverage before the April 1 deadline, Morgan said insurance companies have a lot to gain.

People not covered by a work policy, can go with the provincial plan or get insurance through a private company.

Morgan said the insurance industry could take advantage of the increased demand.

Leaving everybody who falls through the cracks to the public program, he said.

The prescription drug plan is now voluntary.

The rates under this voluntary system range from $800 per year for an individual earning less than $26,360 or a single person with children or a couple with or without children earning $49,389 or less.

The highest fee is $2,000 per year for an individual earning more than $75,000 or a single person with children or a couple with or without children earning more than $100,000.

People will also pay a 30 per cent co-pay, up to a maximum of $30 per prescription.

The department has not set the coverage rates for the mandatory period. However, the Department of Health says the premiums and co-pay fees will be subsidized based on income.

The governments website estimates that rates will be lower than the rates during the voluntary phase because more people will be enrolled in the program.

Despite the costs, Denis Abud, a pharmacist, said the mandatory prescription plan is necessary.

Is the price right? Maybe it has to be readjusted, but for everybody to kick in a little bit, I think it's the only way the plan will work, he said.

Abud said he understands some people will not like paying the extra fee, but the plan will help improve the quality of care given to some people.

We also have patients who get samples from their physicians, which is not always the best way to treat your illness because then we don't know what patients are on, he said.

In the election campaign, Premier Brian Gallants Liberals committed to review the drug plan to ensure that its costs are reasonable for individuals, that its coverage is sufficient and that all small businesses are not subject to an employer mandate.