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CG Insurance denies conflict of interest over pharmacy

Bermuda insurer, CG Insurance on Reid Street, Hamilton

A Bermuda insurer has denied any conflict of interest, as alleged by opposition MP Craig Cannonier during a motion to adjourn in the House of Assembly.

CG Insurance said that it established CG Pharmacy to ensure prescription drugs were affordable and accessible to all Bermuda residents, particularly seniors, the underinsured and the uninsured.

Mr Cannonier was concerned that the insurer was allowed to own a pharmacy, something he claimed that doctors were not even allowed to do.

He believed a pricing differential was paid out by the insurer for generic drugs, based on whether or not their own pharmacy was used to fill the prescription. His argument was that generic drugs were normally covered fully by local insurers.

The insurer had been approached for a response and stated yesterday: “There is no conflict of interest with CG Insurance as a payor of claims providing access to affordable medication.

“Physicians determine what drugs are prescribed, thereby controlling the utilisation and demand for drugs. As a payor, CG has no control over what is being prescribed but ensures that the drugs are affordable and available.

“CG’s standard health plans cover 100 per cent of generic prescriptions at all local pharmacies.

“Some employer groups have requested custom plans where the coinsurance on generic drugs varies, but that is the employer's choice.

“Additionally, CG understands that there is currently no legislation preventing physicians from owning pharmacies, laboratories, radiology/urgent care facilities and dialysis clinics. Several physicians already have interests in these businesses.

“As a people-first company, CG is committed to ensuring that insureds have access to improved health outcomes, reduced disease progression, minimised hospitalisations, and lower overall healthcare costs.”

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Published July 11, 2024 at 8:00 am (Updated July 11, 2024 at 8:00 am)

CG Insurance denies conflict of interest over pharmacy

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