Proposed drug plan could hike costs for New Brunswick operators


(Jan. 28/13) CRFA is concerned by recommendations that New Brunswick introduce a mandatory provincial drug plan because it could create additional costs for foodservice operators.

The recommendations
As New Brunswick is one of only two provinces with no provincial drug plan, a committee studying this issue has recommended government introduce a mandatory program for people without a plan. The committee has also proposed that businesses without an employee drug plan contribute $15 – $20 million toward program costs.

CRFA’s concerns
Given the nature of the foodservice industry – with a significant number of young employees and a high turnover rate – many operators do not offer drug plans, and would therefore have to contribute to the provincial drug plan. The committee’s recommendations create the potential for new costs on businesses already struggling in a weak economy. Moreover, drug costs tend to escalate faster than other economic indicators, setting the stage for much higher costs down the road.

CRFA action
CRFA has contacted senior staff from the Premier’s Office and met with the Deputy Minister of Health to express our concern with placing new costs on restaurateurs as well as the affordability of the committee recommendations. We will continue to fight any plans that raise costs for our members.

Click here (PDF) to read our letter to Health Minister Hugh Flemming.