A major insurer has delayed until June 1 proposed restrictions on where its clients can purchase certain high-cost drugs, including weight loss drugs.

Allshores Ltd said its decision to postpone the deal with Phoenix Stores follows discussions with the Bermuda Health Council and the Government.

In an advertisement in The Royal Gazette, the company said: “Regardless of this delay, Allshores members can currently benefit from the negotiated pricing already in place at Phoenix pharmacies.

“We recognise that there has been some confusion about how this partnership works and want to provide our customers and the community with clear, accurate information.”

The partnership applies only to a limited list of speciality and high-cost medications, the company said.

The insurer encouraged its members to fill prescriptions for such medications at Phoenix pharmacies, which it considered “in-network”.

It said such members will benefit from lower — and in many cases zero — copays owing to negotiated pricing, which is now in effect.

It addition, it said, members will still be able to choose to fill their medications at other pharmacies in Bermuda.

However, the insurer said: “Those pharmacies will be considered out-of-network, and coverage will be 50 per cent or per the member’s Schedule of Benefits.

“By partnering with Phoenix, Allshores has secured lower prices on certain medications — helping members pay less and keep insurance premiums more affordable over time.”

When the company made the announcement about the deal last month, 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.

Kim Wison, the Minister of Health, subsequently urged the insurer to delay the controversial decision.

She told the House of Assembly that she directed the BHC to formally request that Allshores implement a 60-day deferral to May 1 for the introduction of the network policy.

Ms Wilson said the move by the insurer would materially alter how patients access their medications and required “comprehensive review, data analysis and structured dialogue”.

In February, Allshores said the deal will restrict where its clients can purchase certain high-cost drugs — including the weight loss GLP-1 pharmaceuticals Ozempic, Mounjaro and Wegovy, the ADHD medication Adderall and certain specialised pharmaceuticals.

Allshores said 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.

It said the change was undertaken in keeping with requests from its employer clients and was “increasingly common internationally” for cost containment.

Craig Cannonier, the Shadow Minister of Health, said the move by the insurer was “concerning and cannot be ignored”.

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

The opposition MP has called on the Government to examine practices that could create monopolies within the island’s healthcare system.

Allshores said the selection of Phoenix pharmacies followed a request for proposal process.

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 BHC.

The BHC said that in response to the public response to the insurance deal, it would engage with the insurer and stakeholders to better understand the effect on patients and providers.

In a letter to Ms Wilson, 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.