The Canadian healthcare landscape is undergoing rapid change with chronic health conditions increasing across the country, ramping up both drug costs and overall medication usage. It is becoming increasingly clear that employers need to take an integrated approach to employee well-being; one that applies holistic, preventative measures to pinpoint the root causes of disease.
This truth is made abundantly clear in GreenShield’s 2024 Drug Trends Report. Based on more than 34 million drug claims processed last year, the annual report from Canada’s only national non-profit health and benefits company, reveals that total drug costs among claimants increased by $300 million in 2023, compared to the previous year.
“This year’s report offers a compelling window into the emerging health challenges facing Canadians today,” says Mark Rolnick, Executive Vice President, Head of GreenShield Administration. “At GreenShield, we’re committed to improving health outcomes by increasing access to holistic coverage and care. Informed by these trends, we will continue to proactively innovate and adapt our offerings – all in pursuit of our mission of Better Health for All.”
The report makes clear that when employers incorporate cost management strategies like creating stricter preauthorization requirements and incorporating biosimilars into plan design, they can reduce costs without comprising safety and efficacy—and improve health outcomes for Canadians.
The report also provides an in-depth look at how the increase in chronic health issues, particularly obesity and mental health conditions, is not only reshaping prescription drug trends, but highlighting the need for affordable benefits plans to ensure Canadians can access the essential medications they need.
Indeed, one of its most striking findings is a significant spike in the use of obesity medications, as well as the cost. GreenShield saw a 43% increase in claims for weight management drugs in 2023. With obesity-related health conditions on the rise, experts predict that both the use and costs of weight management drugs will continue to climb in the coming years.
This reality makes evident the importance of programs like GreenShield Cares’ Essential Medicines program which provides prescription medications free of charge to eligible Ontarians without public or private drug coverage. This year, GreenShield announced the expansion of this program to Nova Scotia, with other provinces to follow.
“As we expand this program into Nova Scotia, we aim to reach even more people who face difficult choices between paying for essential medications and meeting day-to-day expenses,” says Rolnick. “Access to essential medicines is a fundamental right, and GreenShield, as Canada’s first non-profit payer-provider, is uniquely positioned to both fund and deliver this solution at no cost. We are committed to filling the gap for the one million Canadians left without drug coverage and look forward to expanding this program even further.”
As Canadians navigate an ever-evolving health care landscape, GreenShield’s 2024 Drug Trends Report underscores the need for innovative solutions to meet the growing demand for chronic disease treatments, while ensuring that Canadians have fair access to the care they need.
For more insights on how GreenShield can help employers manage rising plan costs, click to read the full report
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