|
Québec Drug Plan to Increase Premiums by 3.2% in 2006
On Monday, June 26th, 2006, the Québec government announced that the provincial drug plan premiums will increase by 3.2% in July 2006. The rise came down substantially compared to the 9% increase in 2003, 7.4% in 2004 and 5.4% in 2005. This is the smallest annual increase since the government decided to index premiums to cover the cost of the plan. The maximum annual premium had originally be fixed at 175$ upon establishing the plan in 1997 and remained frozen until 2000.
Several aspects of the patient contribution will be adjusted:
- The maximum premium will go from $521 to $538
- The monthly deductible will go from $11.90 to $12.10
- The coinsurance will go from 28.5% to 29%
- The maximum annual patient contribution will go up $24 to $881
The maximum annual contribution of seniors aged 65 and over receiving partial Guaranteed Income Supplement (GIS) will go from $560 to $570. Seniors receiving the maximum GIS and social assistance recipients with severe employment constraints will remain exempt from any contributions.
The drug plan cost is expected to reach approximately $2.5 billion this year. Of this sum, $600 million will come from premiums and $1.9 billion will be funded by the state. Government cost will go up 5.9%, a notable decline compared to the double-digit increases seen in past years.
According to RAMQ officials, the smaller rise is due to the fewer new drugs being launched by drug manufacturers, the withdrawal of the anti-inflammatories Celebrex and Vioxx, the decline in hormone consumption by women undergoing menopause following recent scientific publications, and the slight decline in antibiotic use following information campaigns on their appropriate use.
In addition, Brogan Inc. notes the recent listing of generic copies for several largely prescribed drugs and the trend toward more restrictive listings by drug plan managers.
A few clarifications on the premium schedule under the Québec drug plan. The premiums are essentially income-based, hence the following categories of low-income beneficiaries are exempted: employment assistance recipients, seniors receiving maximum GIS (100%), children of an insured aged under 18, and children of an insured aged 18-25 who are full-time students and without spouse. Seniors receiving no GIS or partial GIS and individuals insured under the universal drug plan (adherents) pay an income-based premium ranging from $0 to a maximum of $538. The premium is calculated every year on the income tax report. The payable amount depends if the individual is single or married/common law and how many dependants are under their charge. Singles will start paying a premium as soon as their income reaches $12,500 whereas married/common law will start paying around $20,000. The threshold is increased if there are dependants.
|
