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Normandin Beaudry

The Act Respecting Prescription Drug Insurance

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There, in black and white

Bulletin NB Vol. 9 N. 13, December 2006

Bill 130, assented to by the Government of Quebec on December 13, 2005, amends various aspects of the Act respecting prescription drug insurance. Some amendments affect the administration of private group insurance plans. A few provisions came into effect on the date of assent or on specified dates in 2006, whereas others will take effect in 2007.

Below is a summary of various provisions impacting the administration of private group insurance plans in 2007.

Effective January 1, 2007

Employers must deduct from the pay of every eligible employee, premiums for prescription drug insurance under the group insurance plans offered to their employees. Only employees who submit proof of coverage under another group insurance plan are exempted from the premium deduction.

Employers that are unable to show that their employee(s) provided them with proof of coverage under another group insurance plan are subject to fines varying between $1,000 and $10,000 per employee, per pay period.

This provision does not apply to employers who pay the portion of the premium related to prescription drug insurance coverage.

The employer’s obligation to deduct the premium does not apply either with respect to employees who are not on the payroll (e.g.: employees on disability leave, leave without pay, maternity leave, etc.) or retired employees.

Effective April 1, 2007

The Régie de l’assurance maladie du Québec (RAMQ) will be authorized to conduct more detailed audits regarding coverage and employee eligibility for private group insurance plans. As such, insurers, plan administrators and policyholders will be required to notify the RAMQ when plan amendments and termination of coverage for one or more employees will result in the transfer of individuals to the public plan.

Please contact your Normandin Beaudry consultant for additional information. You can also consult the RAMQ website at: www.ramq.gouv.qc.ca

 

Please feel free to contact us for additional information.

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