CADA 360 Employee Benefits plan changes
July 24, 2023
The CADA 360 Employee Benefits Dealer Committee members were presented with data from their plan management team showing a rapid spike in the inappropriate usage of diabetic drugs for weight loss. The Committee made the decision to curb this usage immediately, while ensuring claimants who need the diabetic treatments continue to have access to the drugs they need.
As of July 1, 2023, plan members will no longer be eligible for diabetic treatments for what is called “off-label” usage such as weight loss. “These drugs are only approved to treat diabetes in Canada,” said Cindy Robinson, Director, Governance & Plan Management, CADA Employee Life & Health Trust. “We are trying to contain claim costs, which in turn impacts the dealers’ claims experience and therefore their renewal. The goal is to manage claim spending while ensuring claimants who are diabetic have access to these drugs,” said Robinson.
The rapid spike in usage of popular drugs such as Ozempic, and Rybelsus, has helped fuel a 121% increase in diabetes treatments within the CADA 360 plan between 2021 and 2022.
To combat that, the CADA 360 plan will implement a Diabetes Step Therapy Program for all CADA 360 Employee Benefit Plans nationally.
This Step Therapy Program ensures that clinically acceptable and cost-effective first-line drugs are first tried and are on file with Canada Life. If those prove not to be effective, then a second-line drug will be eligible to members with diabetes.
For members with a record of prior first-line diabetes drugs and/or insulin on file with Canada Life, they will not be affected and will continue to be covered for their current second-line drug purchases.
For members without a first-line diabetes drug on file, who are currently taking a second-line drug, or those without an insulin claim on file, will be given until Sept. 30, 2023, to provide proof of first line-diabetes drug and/or insulin, or their coverage will be denied.
These plan members will get a confidential letter from Canada Life in July requesting proof of prior first-line diabetes drug and/or insulin treatment to continue their coverage.
In terms of weight loss medications, Robinson said while it’s not part of many CADA 360 plans, if dealers want to include it in their benefit plan, they can talk to their CADA 360 advisor about adding it. However, it’s important to note that these diabetic drugs would still not be covered if dealers add weight loss drugs to their benefit plan, as these drugs are only approved to treat Diabetes in Canada.
Dealers can also consider adding a Health Care Spending Account (HCSA) to a specific class or to all their employees’ benefit plan. An HCSA is a tax effective way to reimburse allowable expenses that are either not fully covered or not covered at all by their benefit plan. If interested in learning more about how a HCSA can help, dealers should talk with their CADA 360 advisor.