Lower EHC trend factor used for pricing

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Sun Life is pleased to announce that we are lowering our Extended Health Care (EHC) trend factor used for pricing.

New Trend Factors

Our new annual trend factor is 11.5% for all our SunAdvantage groups.

Why are we making these changes?

Sun Life continually reviews our financial experience and emerging practices in the marketplace to ensure our products are priced competitively. We’ve identified a lowering of our actual experience of the EHC benefit as a whole – mainly due to reduced drug spending. The reduction in drug cost is primarily a result of two factors:

  1. Market changes: As patents on ‘blockbuster’ drugs expire, generic drugs (made with the same active ingredient) replace them at a lower cost. Simultaneously, most provincial governments have legislated lower prices on generic drugs. Together this results in a reduction in overall drug pricing.
  2. Cost management solutions: In January 2011 Sun Life launched our Provincial Integration program, to ensure that, on a systematic basis, sponsors do not pay for specialty drugs in circumstances where the provinces have created specialty funding opportunities. Additionally, our in-house pharmaceutical team has several new initiatives in development to help sponsors manage their drug spending more pro-actively going forward. Stay tuned for details.


This new trend factor is applicable to all renewals with an experience period ending on August 31, 2011 or later. Due to the renewal cycle process, these renewals will have a renewal rate effective date of December 1, 2011 or later, depending on the renewal notice period. We are using this new trend factor in our quotes effective immediately.


Please contact your Client Service Administrator at 1-877-786-7227.