Canadian HR Reporter Weekly

2 Canadian HR Reporter, a Thomson Reuters business 2018 CANADIAN HR REPORTER WEEKLY (Reuters) — Sun Life Financial recently started covering medical marijuana through its Canadian health insurance plan — more than 17 years after the country first legalized the drug. e coverage, which requires employers to pay a premium, extends only to a handful of conditions as a last resort. "It's not medical marijuana for any purpose," said Dave Jones, senior vice-president of group benefits at Sun Life in Toronto. "It's for specific conditions and symptoms where the evidence is clear that medical cannabis has enough value to outweigh risks." Sun Life's cautious approach reflects concern across Canada's health insurance industry over the potentially high costs of covering medical marijuana — in many cases, higher than established pharmaceuticals — and thin clinical evidence for its efficacy. Canada, a pioneer in approving the use of medical marijuana, legalized recreational use this summer. But insurers' reluctance to cover pot suggests most patients here and elsewhere may continue to bear most of its cost, despite pending legalization efforts worldwide. Insurers' hesitance stems in part from the experience of agencies in Canada and other countries that have offered coverage and seen costs and usage skyrocket. And many doctors who commonly prescribe pot don't properly examine or follow their patients, said Cyd Courchesne, chief medical officer at Veterans Affairs Canada in Ottawa, which has covered medical cannabis since 2008. "If I was working for any other company, and I was their medical director, I would say, 'Do not reimburse,'" she said. "We do not have enough information right now." Rising demand Cannabis research has been held back globally because most countries ban its use, making purchases for stud- ies illegal or difficult. at's changing in Canada, where a booming marijuana industry and the government now finance medical research, including efforts to create can- nabis-based pharmaceutical-like drugs. Canada law allows patients to buy medical cannabis with money from health-care spending accounts, which are financed by employers, but insurance companies make their own decisions on coverage. Some insurers are starting to cover pot in response to rising demand from employees at the firms buying their coverage. Grocery chain Loblaw last year became the first major Canadian company to ask its insurers to cover medical marijuana. But insurers are treading carefully. Sun Life covers pain associated with cancer, multiple sclerosis (MS), rheumatoid arthritis, HIV and palliative care for serious illnesses; chemotherapy-induced nausea; spasticity from MS; and anorexia due to HIV. Green Shield Canada, Great-West Life and Manulife Financial have said they are considering or planning marijuana coverage. Manulife, which offers marijuana coverage for a few companies that requested it, recommends an annual reimbursement limit from $1,500 to $2,500 and covers only a handful of conditions, said a company spokesperson. Great-West expects to begin offering medical cannabis coverage this year, but only when it's confident the drug will both improve health outcomes and hold down costs for employers. Why are Canadian insurers wary of covering medical marijuana? Potentially high costs, thin clinical evidence part of the problem BY NICHOLA SAMINATHER Sign up for the Canadian HR Newswire today for free and enjoy great content from the publishers of Canadian HR Reporter. HR News at Your Fingertips THE LATEST NEWS THE BEST COMMENTARY DELIVERED WEEKLY FOR READING ON ANY DEVICE Visit www.hrreporter.com/ canadian-hr-newswire

• Cover