Drug Plans

In most employee benefit plans, the cost of drugs comprises 70% of total medical expenses. It is important to note therefore that British Colombia, Alberta, Ontario and Quebec all subscribe to a "best price available" standard for both public and private insurers.

In Ontario, the Drug System Renewal, which often influences policies in other parts of Canada, has generic prices dropping to 25% of the original brand name product by 2012.

In Saskatchewan and Quebec, smoking cessation products are now covered by the provincial drug formulary. Also in Quebec, the application of the Most Favoured Nation legislation is being phased in so that by 2012, generic prices in Quebec will equal the best price across Canada.

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Terminating Employees on Long Term Disability

A common refrain among employees is "how long" they must wait before an employment relationship with an employee on long term disability can be concluded. In a recent court decision (Naccarato v. Costco) the court ruled that termination for frustration in employment contracts extends beyond a calculation of "how long" to a determination of a disabled employee's prognosis for future recovery and a possible return to work.

It is incumbent on the employee to push for a prognosis, usually by means of an Independent Medical Exam, to support there is "no reasonable likelihood" that the disabled employee will be able to return to work.

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