Exclusive insurer-pharmacy tie-ups on the rise in Canada

Report suggests such partnerships have grown increasingly prevalent

Exclusive insurer-pharmacy tie-ups on the rise in Canada

Life & Health

By Terry Gangcuangco

Following the backlash over Manulife’s now-thwarted exclusive deal with Loblaw Companies, a report is suggesting that such partnerships have, in fact, grown increasingly prevalent in the country.

A report published by The Globe and Mail said the Manulife deal “brought much more awareness” to so-called preferred provider/pharmacy networks (PPNs), meaning it’s not a new concept but something that perhaps people are not as informed about.

According to the report, such arrangements have become more commonplace over the past decade, albeit quantifying the change can be challenging.

“All of Canada’s major insurers have some form of PPN arrangement with pharmacies, though they are not consistent in how they communicate them to plan members or the public,” it noted.

PPNs, it was pointed out, can either be voluntary or mandatory. In a mandatory agreement, the report said, plan members will not have the option to fill their prescriptions anywhere else other than the approved providers.      

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