May 2011

Wellness Tip:

Does your heart need some TLC? Today’s fast-paced life and workplace pressures escalate stress levels, taking a toll on one’s heart. We must realize that the healing power of the body decreases when under stress, leading to many complications like hypertension and poor immunity. Eat seaweed. It has been shown to stabilize blood pressure, regulate levels of triglycerides, phospholipids and cholesterols, they dissolve fatty build-ups in the blood vessels, they can restore cardiac efficiency and prolong the life of the heart muscle, and they encourage a steady heart beat. See you at Sushi Bar! It is recommended you consult with a physician or specialist before making changes to your diet.

Morrow, Crossdale & Associates Inc.
445 Apple Creek Blvd.
Suite 219
Markham, Ontario
www.morcro.ca
E.G (Ted) Morrow:
ted.morrow@morcro.ca
Paul Crossdale:
paul.crossdale@morcro.ca
Sean Ross:
sean.ross@morcro.ca

A New “Exclusive” Cost Saving ArrangementIn April 2010, the Ontario Ministry of Health and Long-Term Care introduced changes designed to reduce the cost of Generic drugs covered under the Ontario Drug Benefit Plan (ODB Plan). This plan is designed primarily for residents of Ontario over age 65.

The impact of these changes has resulted in reduced revenue streams to pharmacists in Ontario. We are already seeing increases in dispensing fees for private payers (non ODB). The full impact of the reduced pricing for non ODB Generic drugs will not come into effect until April 1st, 2013. In the meantime, costs are increasing to private payers and premiums for drug programs will increase in proportion.

In an effort to assist our clients in managing present and future drug costs, MC&A is pleased to announce our newly established relationship with Metro Ontario Pharmacies Limited as part of our “Preferred Provider Network”. The participating pharmacies include “The Pharmacy” in Metro stores and “Drug Basics Pharmacy” in Food Basics Stores. Our clients and their plan members may realize significant cost savings by using this PPN.

Savings are achieved through:

 

1) Generic prescription medications priced at Ontario Drug Benefit (ODB) pricing, which is currently 25% of Brand name equivalent pricing on most ODB generic drugs

2) Preferred Dispensing fees, which are restricted to either the ODB level of $8.00 per prescription, or $3.99 per prescription, if the plan design qualifies or if plan changes are implemented to augment the dispensing fee coverage under the plan to incent the use of the lowest dispensing fee available.

3) Prescription drug mark-ups capped at 10% for all prescription medications

4) One complimentary Wellness Clinic to be hosted at plan sponsor site, and MedsCheck services available (dependent upon location)

Sample Cost SavingsWe feel that through our affiliation with this PPN, we can offer our clients and their members some significant cost savings. Given the current climate with retail pharmacies it is important to utilize the restrictions associated with dispensing fees and mark ups.

EXAMPLE 1 – ODB Formulary Generic Medication (non-ODB patient)

Plan Member NOT participating in PPN Plan Member PARTICIPATING in PPN
COSTMarkup @ 10%

Dispensing Fee

TOTAL

$100.00$10.00

$11.00

$121.00

$50.00$5.00

$8.00

$63.00

Total Savings = $121 – $63 = $58.00 (48%)
  • These calculations are for demonstration purposes only. Actual prices and savings will vary and will depend on the cost of the dispensed medication

EXAMPLE 2 – All other non-ODB Generic Medications

Plan Member NOT participating in PPN Plan Member PARTICIPATING in PPN
COSTMarkup @ 10%

Dispensing Fee

TOTAL

$100.00$10.00

$11.00

$121.00

$100.00$10.00

$8.00

$118.00

Total Savings =$121 – $118 = $3.00 (2.5%)
  • These calculations are for demonstration purposes only. Actual prices and savings will vary and will depend on the cost of the dispensed medication

About Metro Ontario Pharmacies Limited

Metro Inc. is the third largest grocery retailer in Canada with over 600 locations in Ontario and Quebec. In Ontario, Metro operates nearly 300 stores under the “Food Basics” and “Metro” banners. MetroOntario supports 80 full service Pharmacies under the name “The Pharmacy” and “Drug Basics”. Metro’s current PPN clients include colleges and universities, benefits groups, employers and Ontario organizations.

Should you have any further questions, contact your MC&A Benefit Advisor directly.

 

 

excerpts provided by: Synergy Benefit Consulting Inc. March 2011

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