Generic Drugs and Your Health Plan

When you go to Costco, do you buy Advil or do you buy the Kirkland version of Advil? At the grocery store do you buy the $7.00 tub of “Greek Yogurt” or the “Presidents Choice” version for $3.99? In our home, we buy the President Choice version because it is as good or better for a noticeably lower price. We like to have both quality and good value when we make a purchase decision.

The same should be true when you buy a prescription drug. But in many cases, it is not happening.

Our company requires all prescriptions to be filled with the generic equivalent drug unless the Doctor specifies “No Substitution”. We do this because in the majority of cases, there will be no difference in the efficacy of the generic drug relative to the name brand. The cost will be markedly different. By using the generic drug, we have saved our clients hundreds of thousands of dollars in the last year alone.

Imagine the impact over five years!

It is important that everyone who is covered by an employee benefit plan understands how the cost of the plan can be impacted by their spending. In the case of generic substitution, the cause and effect is demonstrable. Our objective is to keep our client plans sustainable for the long term.

Our generic fill rate is well above the Canadian average but it is still below the US rate which was 75% in 2010 (Source: IMS Health). Next time you get a prescription from your doctor, ask for the generic equivalent at the pharmacy. You will be amazed at the difference in price.

You will be helping to keep you and your benefit plan healthy for the long run.

Aging...actively: Part 2

There is no doubt that part of aging and living a full life is to win the Gene Lottery. I am one of those lucky ones. In spite of both of my parents dying young (my Mom was only 40 when she dropped dead from a heart attack), I have won the Gene Lottery. I have no cholesterol, blood pressure or other health issues. There are the usual aches and limitations; my half marathon days are over….but I am not going to go quietly into the night. I am planning on leading an active and engaged life until my last breath. My Aunts and Uncles are wonderful role models. They all work (including Uncle Bill who is now past 80) and travel the world and have a positive outlook on life. My Aunt and Uncle in Montreal gave up their car years ago and walk to work each day.

Joseph Coughlin, Founder of MIT’s Agelab says “We spend billions trying to live longer but no one puts any thought or investment into how to live longer, better”. This is a valid concern as the Boomer population ages and lives longer. By 2030, those over age 65 will double in the US and constitute 20% of the population. According to Statistics Canada, “The number of senior citizens in the country could more than double over the next 20 years.” What is worrisome about this shift in demographics is the decreasing labour pool as boomers retire. “In 1981, there were roughly six persons in the labour force for each retiree. By 2031, it will be less than three to one.” To make our retirement platform sustainable, we either need to introduce more workers through immigration or a higher birthrate, or we need to work longer.

Based on the small sample of my family (6 aunts and uncles over age 65 and all working), working longer is a very good outcome. Work keeps people active, involved and engaged. They are forced to interact with other people regularly and evolve. Uncle Bill was 83 when he first invited me to be his friend on Facebook! He is excited to go to the office and learn new skills. Work sustains people beyond the financial rewards. It is time to rid ourselves of the “retire at 65” mentality and seek to stay engaged and productive regardless of age.

I would love to hear your ideas for aging actively...

Aging…..actively: Part 1

On a recent trip to the south of France, I was astounded at how active and fit the older set appeared. My husband and I stayed in a beautiful little town built into the side of a mountain. I over packed (as usual) not realizing that you could only drive the car halfway up the mountain. This meant you had to walk and carry your bags the rest of the way. Our friends were staying even higher up in the town. The first time I hiked up to visit them; I thought I was going to pass out. Those hills are steep! The second time I was still panting. By the fifth time up the mountain, I was still breathing heavily, but my body was adapting to the rigor of the climb.

It was disappointing to me that I found it such a challenge. After all, I belong to a gym and regularly spin, do Pilates and walk. I thought I led a healthy active lifestyle……that is until I saw the “old lady”. Now that I am on the other side of “50”, my son calls me old. I however, do not think of myself as old. At least not in comparison to the 80ish year old lady I saw walking up and down the mountain with her faithful dog. This “old” lady was pounding it up the same hill, whereas I had huffed and dragged myself halfway. She had the same routine every day and made it look like a walk in the park.

When we walked around the neighboring town below, we saw many older folks. Always walking, interacting and smiling (some were even holding hands!). Other than the obvious tourists, what I did not see was obese or wheelchair bound elderly people. Very different than when you walk around a North American city.

I am sure the temperate climate is helpful, but it sure looks like these older folks have aging figured out. Stay active, interact with your community, smile and have a dog to keep you company every day when you climb the mountain!

Are Americans smarter than Canadians?

Health Spending Accounts (HSA) have been available to Canadians since 1986 and they are still the best kept secret. In the US, HSAs first became available to consumers and employers in January 2004. According to a recent survey by Devenir, total HSA deposits rose to $11.7 billion as of June 2011…. Yes, that is BILLIONS of dollars. So are Americans smarter than Canadians?

As a patriotic Canadian, I am not prepared to jump to that conclusion. I think it is fair to say that Americans are more pragmatic and motivated to find effective economic solutions which suit their needs, or they can be on the hook for huge medical bills. Many Canadians and, in some cases, the professionals who advise them are simply not aware of the many benefits of a Health Spending Account.

Our company has been administering Health Spending Accounts for over a decade, and I have observed the peace of mind and satisfaction firsthand with so many clients. I have heard the same phrase over and over again “why didn’t someone tell me about this sooner?” I am certainly trying to tell anyone who will listen, but I am only one voice.


I believe that every Canadian should have the freedom to decide how to spend their healthcare dollars, and they can with a Health Spending Account. You can have choice and still be protected all while remaining ahead of the game financially. You just need the information.

So no, Americans are not smarter than Canadians. They have just embraced a good solution with stealth and enthusiasm. You can too!