THE recent decision by the Federal Health Minister Mark Butler to allow consumers to collect two months' worth of selected medicines at their pharmacy has raised concerns from various parties.
One such concern comes from the insurance industry, and in particular, from the Honan Insurance Group (HIG), a globally-networked insurance broker, with a team of business risk advisors that manage half a billion in annual premiums for national and multinational businesses from offices in Australia, New Zealand, Malaysia and Singapore.
Their five key considerations are firstly major medicine shortages, as already raised by the Pharmacy Guild of Australia.
"Supplier stock levels have still not returned to pre-pandemic highs and the decision to allow a customer to receive two months' worth of their medication at once will most likely further impact these shortages," noted Giuseppe Carollo, Head of Carollo Horton, part of HIG.
"If a pharmacy business makes an insurance claim for damaged stock, the time it takes to replace the stock could impact the business' income more than the initial impact of the claim," stressed Carollo.
Another concern is the safety risks associated with consumers stockpiling medications and potentially overdosing.
"While the independent Pharmaceutical Benefits Advisory Committee carefully considered the safety aspects of which drugs would be on the list, insurers may need to prepare for potential claims related to overdose or adverse reactions.
"This could lead to increased premiums and a greater need for risk management strategies," warns Carollo.
With the potential loss of foot traffic, he added that "local pharmacists may start charging for services that are now free, such as making up blister packs or offering home delivery.
"Insurers may need to consider the impact this could have on their clients and whether they will cover the cost of providing these services.
"This too could lead to increased premiums or changes in policy terms," explained Carollo.
While sudden closures of pharmacies are unlikely, insurers should be prepared for the potential impact on rural or remote clients as pharmacies consider covering the cost of travel or delivery, he said.
Further, the decision to allow two months' worth of medicine collection highlights the need for a more patient-centric healthcare system, stated Carollo.
"Insurers should consider the potential for changes in healthcare delivery and how this may impact pharmacy retailers.
"For example, if pharmacies offer more home delivery services, insurers may need to adjust their policies to cover these services.
"Additionally, insurers may need to consider the potential for telehealth services and how this may impact the delivery of healthcare," Carollo concluded.
The above article was sent to subscribers in Pharmacy Daily's issue from 05 May 23
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