Sun Life to add medical pot option to group benefits plans

Sun Life Financial Inc. is adding medical marijuana coverage as an option for its group benefits plans, signalling an insurance industry shift and growing acceptance of the drug that bodes well for Canada’s burgeoning cannabis sector.

The Toronto-based insurer’s president and chief executive Dean Connor said the move was influenced by rising interest from Sun Life’s employer clients.

“Medical marijuana has become a very important part of their treatment program and pain management program,’’ said Connor, referring to patients who have cancer, multiple sclerosis, rheumatoid arthritis, or those requiring palliative care.

Currently, the vast majority of registered patients must pay for medical marijuana out of their own pockets. But the move by Sun Life, which provides health benefits coverage to more than three million Canadians and their families, or one-in-six Canadians, could set a precedent for other insurers.

The new offering comes as the country moves to legalize cannabis for recreational use later this year and as the number of registered medical marijuana patients grows. There were more than 235,000 medical marijuana patients in the system across Canada at the end of September 2017 _ the most recent date for which data is available _ more than double the roughly 98,500 a year earlier, noted Vahan Ajamian, a Beacon Securities Ltd. research analyst.

“The insurance companies have been getting pressure to cover this as a regular medicine,’’ he said.