Pot now on group benefit plan,
TORONTO — Sun Life Financial Inc. is adding medical marijuana coverage as an option for its group benefit 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 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.
Meanwhile, pharmacists and pharmacies have also been warming up to cannabis.
Shoppers Drug Mart has lined up supply agreements with licensed producers, conditional upon Health Canada’s approval of its application to dispense the drug. The Canadian Pharmacists Association and two Quebec groups representing the industry have also said that pharmacies should play a leading role in medical marijuana’s distribution.
Jonathan Zaid, the executive director of patient advocacy group Canadians for Fair Access to Medical Marijuana, said Sun Life’s enhanced coverage comes after years of litigation to gain acceptance for medical marijuana.
“Although there may not be immediate benefit for patients as specific plan sponsors will need to purchase the coverage, this move will make covering medical cannabis simpler than today’s exception process and speaks volumes to the broader acceptance and legitimacy of medical cannabis,” he said.
A number of plan sponsors have moved to cover medical cannabis costs over the years, Zaid noted, including the University of Waterloo’s student union, the Arthritis Society, Loblaw Companies Ltd., the Ontario Public Service Employees Union and the Labourers’ International Union of North America.
Those plans have varying eligibility criteria and levels of coverage, he added.
Starting March 1, plan sponsors with Sun Life will have the option to add medical cannabis coverage to extended health-care plans, ranging from $1,500 to $6,000 per covered person per year.