Agreement on Federal Retirees' Drug Premium Payments

Retired federal employees in Nova Scotia will no longer have to pay two prescription drug premiums as a result of an agreement reached between the province and Public Service Health Care Plan (PSHCP).

Discussions have been ongoing between the province and PSHCP since March 1999 when the provincial Pharmacare program moved to insurer of last resort. The change was made in response to the many requests from seniors who did not want to have to pay two premium payments -- one to cover their private insurance and one to the Nova Scotia Seniors' Pharmacare program. Full coverage for drug costs were excluded under the federal plan.

In accordance with the agreement, PSHCP will now for the first time provide full drug coverage to their Nova Scotia members who do not receive the guaranteed income supplement. This policy is similar to the PSHCP arrangement with New Brunswick.

The new agreement means that this group of about 8,000 seniors will no longer have to pay a second premium payment to Pharmacare. In fact, they will be reimbursed the full $215 premium they paid to Nova Scotia Pharmacare back in April for fiscal 1999-2000.

The Nova Scotia Seniors' Pharmacare Program will continue to cover about 6,000 low-income seniors who belong to PSHCP and who receive the guaranteed income supplement. Seniors receive the guaranteed income supplement from the federal government if their income falls below a minimum level. As a result, this group of seniors are not required to pay the $215 Nova Scotia premium.

"We are extremely pleased that an agreement has been reached," said Health Minister Jim Smith. "This has been a very difficult time for seniors. Discussions took longer than expected, but it was all worth it now that we have been assured that the Public Service Health Care Plan will meet its responsibility and provide full drug coverage to many of their senior members."

Pharmacare will continue to cover all PSHCP members until the changeover takes place Oct. 1. The agreement is retroactive to April 1, 1999.

"We had to take into account the fact that many seniors are away during the summer," explained Dr. Smith. "We agreed on waiting until October to ensure everyone is well aware of the change."

PSHCP is expected to formally notify its retirees of the change within the next month.