(Jan. 15/14) CRFA’s lobby efforts have helped New Brunswick restaurateurs save up to $25 million in potential payroll taxes for the province’s new universal drug plan.

When introduced in the legislative assembly last month, the New Brunswick Drug Plan did not include the 2.25 per cent payroll tax proposed in the original plan. This tax would have cost the business community $20 million to $25 million, and gone toward funding the $150-million plan.

About the new drug plan
The New Brunswick Drug Plan aims to help residents avoid catastrophic drug costs and ensure that prescription drug insurance is available to everyone. The plan will be implemented in two phases, beginning May 1, 2014.

Private plans
Once the New Brunswick Drug Plan enters its second phase on April 1, 2015, minimum coverage standards will apply to all private group drug plans. These standards mean:

  • all private group plans will cover every drug included in the New Brunswick Prescription Drug formulary;
  • private group plans cannot have annual or lifetime caps on coverage; and
  • pharmacy costs must be managed in one of two ways depending on plan design.

Click here to learn more about the New Brunswick Drug Plan.

What’s next?
Health Minister Hugh Flemming announced a new consultation process to assess how businesses can contribute to the plan. CRFA will continue fighting to ensure restaurateurs are not negatively impacted by the introduction of the new drug plan.


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