National Post (Canada):Civil servants won't get free Viagra, Threat to health plan
Thursday, November 19, 1998
Brad Evenson
National Post
The federal government has told its employees it will not pay for
Viagra, the anti-impotence drug. The anticipated demand is so
great that actuaries fear it could bankrupt the country's largest
health plan.
"In the United States, Viagra has been the fastest selling drug in
history," a bulletin says.
Effective immediately, it states, the Treasury Board has decided not
to cover the drug when it is approved in Canada. Approval is
expected before Christmas.
Roughly one million people are covered by the plan, including
RCMP officers and military personnel. It paid $256.6-million in
medical benefits last year.
The decision is part of a consensus among health insurers against
covering new "lifestyle" drugs, including medications for baldness,
obesity and even shyness.
According to William M. Mercer Ltd., a human-resources
consulting company, Canada has a potential 3.6 million customers
for Viagra, although less than one in 10 is likely to seek treatment.
Insurers typically pay $300 to $500 per client for prescription
drugs.
Viagra is expected to cost $14 a pill, and a normal monthly
prescription is eight to 10 pills. That would bring the annual tab to
$1,680, excluding pharmacy dispensing fees.
"If the (government plan) were to cover Viagra, this would likely
result in plan changes potentially affecting all members," said the
memo, promising to review the decision at a later date.
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