An Opposition MP has called on the Government to examine practices which will create monopolies within the island’s healthcare system.

Craig Cannonier, the Shadow Minister of Health, said today that the recent announcement by a top insurer on restrictions on where its clients can purchase certain high-cost drugs “is concerning and cannot be ignored”.

His comments came after Allshores Ltd announced on Monday that as of March 1, clients will be directed to Phoenix pharmacies for a suite of medications.

Along with GLP-1 drugs, the list includes a variety of medications ranging from ADHD medication Adderall to specialised pharmaceuticals for conditions such as cystic fibrosis and psoriasis.

Medications on the list include Ozempic, Mounjaro and Wegovy — developed to treat diabetes — which have soared in popularity on the island for treatment of obesity, putting pressure on the healthcare system because of their high price tag.

While Allshores Ltd said its deal with Phoenix Stores would help to address the rising costs of medication for the company’s clients, the Bermuda Medical Doctors Association said it was seriously concerned about the side effects of the policy.

Independent pharmacies also spoke out against the plan, stating that it would have a long-term negative impact on the healthcare system and drug costs.

Mr Cannonier said the initial reaction from residents and independent pharmacists was one of surprise and disappointment.

The One Bermuda Alliance MP added: “While it cites that by having a sole provider for certain medicines will assist in keeping the rising cost of medication down, this move will negatively affect the bottom line for smaller and independent pharmacies.”

He asked: “Can Bermuda truly afford to see any more businesses close?”

Mr Cannonier said residents — already concerned with medical issues — “do not need the added stress of being pressured to use a pharmacy that may not be their first choice”.

He added: “For the last two years, on the floor of the House of Assembly, I have been urging the Government to take a serious look at health insurance companies and how they were heading towards monopoly.

“Nothing has happened and here we are today. I implore the health minister to look into this situation as it is simply untenable to the people of Bermuda.”

An Allshores spokeswoman said the high-cost prescription drugs — including GLP-1 treatments, biologics and oncology therapies — have become responsible for more than 30 per cent of expenses, despite representing about 3 per cent of prescriptions.

Allshores said its move was undertaken in keeping with requests from employer clients, and was “increasingly common internationally” for cost containment.

The selection of Phoenix pharmacies followed a request for proposal process.

Effective from April 1, new prescriptions for the listed medications filled at other pharmacies will be subject to coverage under separate health plans.

Allshores said the move would not affect regular prescriptions, with members free to fill non-high-cost medications at pharmacies of their choice in line with their existing coverage.

However, the BMDA said the policy raised serious concerns about patient choice, medication safety, administrative burdens and the increasing corporatisation of medical care.

The BMDA also noted that Allshores, which came out of the merger of BF&M and Argus last year, had acquired medical practices in Bermuda, sparking concerns from the Bermuda Health Council.

The Bermuda Health Council said that in response to the public response to the announcement, it would engage with the insurer and stakeholders to better understand the effect on patients and providers.

In a letter to Kim Wilson, the Minister of Health, some independent pharmacists said that the approach taken by Allshores would bring “irreparable damage” to the island, and urged the Government to consider any impact.

A health ministry spokeswoman said yesterday that the ministry remained committed to ensuring residents can access the medications they need, a commitment which was one of its “highest priorities”.

She added: “Work to improve pharmaceutical affordability is already under way.

“The national drug formulary will introduce clearer pricing oversight to help ensure essential medications remain accessible and affordable for all residents.

“The ministry remains committed to a health system that supports access, sustainability and fairness.”