Manulife-Loblaw deal raises questions over ties between insurance companies, big drug retailers

Manulife says its coverage of certain specialty prescription drugs will only apply at Loblaw-owned pharmacies, raising questions over the relationship between insurance providers and major pharmacy retailers.

For independent pharmacists like Kyro Maseh, who owns Lawlor Pharmasave in Toronto, the deal signals another shift away from personalized care for patients who have a longstanding relationship with their local pharmacist.

«What it means for the patient at the end of the day is that they're going to be picking up their medications from a high-volume pharmacy, or mail-order pharmacy for that matter, thus eliminating any sort of personal care in the process,» Maseh told CBC News.

Known as «preferred pharmacy network arrangements,» such exclusivity deals are common in the U.S. And while they aren't new to Canada, they are gaining traction, which worries pharmacists like Maseh.

«We're slowly moving towards the American model where it's all going to be just high-volume pill factories,» he said, noting that some patients might have to travel to get to a pharmacy where their medication is available.

The Manulife-Loblaw arrangement — details of which were shared with plan holders earlier this month — affects around 260 medications under the insurance company's Specialty Drug Care program.

Drugs in this class are meant to treat complex, chronic or life-threatening conditions such as rheumatoid arthritis, Crohn's disease, multiple sclerosis, pulmonary arterial hypertension, cancer, osteoporosis and hepatitis C.

«The very big and very powerful insurance companies essentially are exercising some of their market power in the pharmacy business,» said Stephen Morgan, a professor at the University of British Columbia who specializes in