Krieger + Associates Benefits Consultants - Group Benefit and Pension Consulting and Employee Communications in Toronto

JANUARY/FEBRUARY 2010

Changes to Alberta’s Prescription Drug Program for Seniors

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Effective date: July 1, 2010

As part of a new pharmaceutical strategy, Alberta is making changes to some of its drug programs, including their program for seniors.

The changes to the seniors program will only affect drug plans covering Alberta seniors.
Currently, Alberta seniors and their dependants are automatically provided with premium-free prescription drug coverage for drugs listed on the Drug Benefit List. As of July 1, 2010, this program will be optional and some seniors will have to pay a monthly premium. Seniors who want to participate must apply for coverage.

Current Prescription Drug Plan for Alberta Seniors Vs. New Drug Plan

	Current Drug Plan	Drug Plan effective July 1, 2010
Co-payment	30% of the cost of prescriptions	20% of the cost of prescriptions
Maximums	$25 per prescription	$15 per prescription
Premiums	No monthly premium	Monthly premium based on income
Coverage	Automatic coverage	Optional coverage

The monthly premium and co-payment are determined by the senior’s income. According to information provided by the province, it is expected that “low-income” seniors, about seven percent of the senior population, will receive free prescription drugs - they will not pay a co-payment or a premium. Another 49 percent of seniors will pay a co-payment, but not a premium. Higher income seniors will pay the co-payment and a monthly premium as illustrated below.

Single income:

Taxable income	Premium	Co-payment per prescription
$0 - $12,000	$0	$0
$12,001 - $24,000	$0	20% to a maximum of $15
$24,001 - $36,000	$31.75 per month	20% to a maximum of $15
$36,001 - $48,000	$47.62 per month	20% to a maximum of $15
$48,001 or more	$63.50 per month	20% to a maximum of $15

Family income:

Taxable income	Premium	Co-payment per prescription
$0 - $24,000	$0	$0
$24,001 - $48,000	$0	20% to a maximum of $15
$48,001 - $72,000	$59.00 per month	20% to a maximum of $15
$72,001 - $96,000	$88.50 per month	20% to a maximum of $15
$96,001 or more	$118.00 per month	20% to a maximum of $15

Impact for Drug Plan Sponsors:
Currently, private plans covering seniors pay about 30 percent of the total drug cost incurred by seniors in Alberta. As of July 1, 2010, private plans will pick up 100 percent of the drug costs incurred by seniors who do not register for coverage. If you have seniors living in Alberta, you should encourage them to apply for coverage. If employees choose to enroll at a later date, they will be subjected to a three month waiting period.

The Alberta government has not clarified how their new program will coordinate with private drug plans, but we will continue to provide details as they become available.

Questions
For additional information, please visit the Alberta government Web site at: http://www.health.gov.ab.ca/

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