Manulife-Loblaw Partnership Raises Questions over Insurance-Pharmacy Ties

A recent partnership between Manulife, one of Canada’s largest insurance providers, and Loblaw, a major pharmacy retailer, has raised concerns about the relationship between insurance companies and pharmacy retailers. The partnership, which involves Manulife’s coverage of certain specialty prescription drugs, will only apply at Loblaw-owned pharmacies. This arrangement, known as a “preferred pharmacy network,” is becoming increasingly common in Canada, but critics argue that it could lead to a shift away from personalized care for patients.

Independent pharmacists, such as Kyro Maseh, who owns Lawlor Pharmasave in Toronto, worry that this partnership will eliminate the personal care that patients receive from their local pharmacist. Maseh believes that this move towards high-volume pharmacies and mail-order services could result in patients having to travel further to access their medication. The deal between Manulife and Loblaw affects approximately 260 medications under Manulife’s Specialty Drug Care program.

This arrangement highlights the growing influence of insurance companies in the pharmacy business. The power of insurance companies lies in their ability to direct customers to specific pharmacies in exchange for financial incentives. Canada spends billions of dollars each year on specialty drugs, and insurance companies want a share of the profits. However, these exclusive agreements and the markups on specialty drugs can lead to secretive and questionable practices between the drug manufacturer, patient support programs, insurers, and pharmacies.

The impact of these arrangements on patients who rely on specialty drugs is a concern. Patients may be forced to switch pharmacies or travel longer distances to access their medications. This could be particularly challenging for those living in rural areas. Furthermore, the lack of transparency in these agreements raises questions about the fairness of the system.

The Manulife-Loblaw partnership is not the first of its kind in Canada. Another insurance provider, GreenShield, introduced a preferred pharmacy network arrangement for specialty drugs in 2015. However, these arrangements are becoming more common for specialty drugs, affecting a growing number of patients. Some experts argue that these arrangements can lead to better deals for insurers and, in turn, savings for insured customers. However, others believe that this could lead to a lack of competition and reduced access to personalized care for patients.

Both Manulife and Loblaw defend the partnership, stating that it provides more options for group benefits members to receive their specialty medications. Manulife emphasizes the availability of a dedicated team of professionals to manage and administer medications. Loblaw assures patients that their experience will remain unchanged or even improve, with the ability to pick up prescriptions from any pharmacy within their network or have them delivered to their homes.