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Normandin Beaudry

New Financial Parameters for the Quebec Prescription Drug Insurance Plan

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There, in black and white

NB Bulletin Vol. 14 N. 6, July 2011

The Régie de l'assurance maladie du Québec recently announced the new financial parameters that will apply to the public prescription drug insurance plan for the period of July 1st, 2011 to June 30, 2012. One of the provisions of Quebec's Act respecting prescription drug insurance provides for the revision of these parameters on July 1st each year to take into account the increase or decrease in plan costs.

The table below presents the changes to the parameters that will apply to all individuals covered under the public plan, with the exception of those who receive prescription drugs free of charge (no premium or contribution) and individuals aged 65 or over receiving less than 94% of the Guaranteed Income Supplement (GIS), who are subject to a reduced contribution:
 

 Before
July 1, 2011
Effective
July 1, 2011
Maximum annual premium$600$563
Monthly deductible$16.00$16.00
Coinsurance32%32%
Maximum contribution1    
     -monthly$80.25$80.25
     -annual$963$963

1 This amount includes the deductible and coinsurance.

The following individuals who are not covered by a private plan receive prescription drugs free of charge:

  • holders of a claim slip (generally recipients of last-resort financial assistance);
  • individuals aged 65 or over receiving from 94% to 100% of the GIS; and
  • children under age 18 and full-time students from age 18 to 25 who do not have a spouse and live with their parents.

Impact on private group insurance plans

We do not anticipate any financial impact on private plans as a result of the implementation of new financial parameters. Private plans do not benefit from the same set of cost control measures that apply to the public plan. Observing the same premium reductions in private plans would be surprising.

However, some of these cost control measures and others could be applied to private plans, but they require a demand to the insurer. The Normandin Beaudry consultants could help you in your reflections.

Moreover, for the first time since 2005, the maximum contribution for an insured in Quebec with high costs of drugs will not be increased on July 1st, 2011.

 

 

Please feel free to contact us for additional information.

514.285.1122
 
630, René-Lévesque Blvd. West, 30th floor
Montreal, Quebec, H3B 1S6