Major Canadian health insurance company Sun Life Assurance Co. of Canada is now offering optional coverage for medical cannabis. Starting this month, the Toronto-based insurer is allowing companies to add a medical cannabis option in its group benefits plans.
Sun Life Assurance, which operates through Sun Life Financial Canada, is the first Canadian insurance firm to offer an extended-health care plan that includes optional medical cannabis coverage.
Sun Life supplies group dental and health benefits to around 22,000 companies in the country — or 3 million employees plus their families. This means one in every six Canadians.
Sun Life said in a press release that its maximum annual coverage ranges from C$1,500 to C$6,000 per year per person and that it applies to medicinal cannabis that is dispensed in accordance with government regulations. What’s more, plan members, as well as their dependents, will have to meet clinical criteria or will have to undergo the approval process.
“Because this is something that our clients have been continuously requesting, we have evaluated and reviewed it, and are now offering it as a plan benefit for medical purposes.” – Dave Jones, senior VP of group benefits at Sun Life
The insurer has also listed specific conditions and symptoms that would make one eligible for the medical cannabis coverage:
- spasticity and neuropathic pain related to multiple sclerosis
- refractory or severe pain associated with cancer and vomiting and nausea associated with chemotherapy and cancer treatments
- neuropathic pain and loss of appetite related to HIV/AIDS
- pain associated with rheumatoid arthritis that no longer responds to standard therapy
Patients who are in palliative care will also qualify.
Furthermore, Sun Life’s coverage lists medical cannabis under the “medical services and equipment” category instead of under “drug benefit” as it does not have a DIN or drug identification number. Medical cannabis has no DIN as it has yet to receive approval from Health Canada under the Food and Drugs Act.
In 2017, Manulife started to provide medical cannabis benefits to Loblaw and Shoppers Drug Mart’s 45,000 employees. Under the Manulife plan, neuropathic pain associated with MS and vomiting and nausea induced by cancer treatment or chemotherapy are covered.
“We are hoping employers or plan sponsors would see the advantages and the benefits of providing their members and employees medical cannabis coverage and decide to include this kind of extended coverage on their plan. These positive benefits include potential cost savings, as well as substation of more harmful drugs.” – CFAMM Executive Director Jonathan Zaid
Veterans Affairs Canada also covers the cost of medical cannabis for about a decade. There is, however, a three-gram cannabis cap per veteran per day.
Dave Jones, senior VP of group benefits at Sun Life, told The Globe and Mail that their move was based on medical evidence supporting the use of marijuana for the treatment of serious and severe health conditions.
“Because this is something that our clients have been continuously requesting, we have evaluated and reviewed it, and are now offering it as a plan benefit for medical purposes,” Jones said.
Canadians for Fair Access to Medical Marijuana (CFAMM) Executive Director Jonathan Zaid said that Sun Life’s move is a positive step forward that will lead to the broader coverage of costs associated with medical cannabis. However, since Sun Life’s plan is merely an optional add-on and not exactly underwritten in normal drug benefits, this still rests on the employers, who are the individual plan sponsors, to avail of the coverage.
Zaid added that they are hoping employers or plan sponsors would see the advantages and the benefits of providing their members and employees medical cannabis coverage and decide to include this kind of extended coverage on their plan. These positive benefits include potential cost savings, as well as substation of more harmful drugs.