November 14, 2024

GreenShield's 2024 Drug Trends Report Finds Medication Costs Are Way Up in Canada – As Are the Use of Obesity and Mental Health-Related Drugs

According to the annual report, the number of Canadians claiming weight management drugs increased by 43% last year; and those claiming ADHD medication rose by 20%. Meanwhile, pharmacists are prescribing more medications than ever before.

GreenShield's 2024 Drug Trends Report Finds Medication Costs Are Way Up in Canada – As Are the Use of Obesity and Mental Health-Related Drugs

According to the annual report, the number of Canadians claiming weight management drugs increased by 43% last year; and those claiming ADHD medication rose by 20%.Meanwhile, pharmacists are prescribing more medications than ever before.

Toronto,Ontario – November 14, 2024 —A new report reveals that Canadians are facing a growing wave of complex health conditions, driving an urgent need for accessible medications. According to GreenShield’s 2024 Drug Trends Report, total drug costs increased by $300million in 2023 compared to the previous year, highlighting the important role of affordable and innovative prescription drug plans in supporting the evolving needs of Canadians.

The annual report from GreenShield, Canada’s only national non-profit health and benefits company, is based on more than 34 million drug claims from over two million claimants processed by GreenShield in 2023.

“This year’s report offers a compelling window into the emerging health challenges facing Canadians today – including an overall rise in drug usage and costs," said Mark Rolnick, Executive VicePresident and 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 BetterHealth for All.”

2024 Drug Trends Report key findings:

Overall drug costs continue to rise

  • Total drug costs for our customers grew by $300million to $2.5 billion between 2022 and 2023.
  • Drug cost per claimant increased by $18 from2022 to 2023.
  • The total cost for specialty drugs byGreenShield’s claimants was roughly $700 million in 2023, up from $630 millionin 2022.
  • Over the past 5 years, total drug costs increased by over 66% while claimants only increased by approximately 24%.

The use of obesity drugs has surged

  • In 2023, there was a 43% increase in GreenShield claimants filing claims for obesity drugs, compared to 2022.
  • Both the use and the cost of these medications are expected to continue to grow in the coming years.

Diabetes medication sees double-digit growth in claims and costs

  • Diabetes medications saw a 13% increase in cost, accounting for 9% of total drug costs in 2023.
  • There was a 16% increase in claims related to diabetes, accounting for 7% of drug claims overall.
  • The share of Canadians diagnosed with diabetes is estimated to increase from 15% to 17% by 2033.

Mental health diagnoses and medication use are rising

  • Since the onset of the COVID-19 pandemicGreenShield has seen a 132% increase in mental health claims, and a 50%increase in claimants seeking mental health related medications.
  • Depression and anxiety medications were the second most-claimed drug expenses in 2023, after infection-related claims.
  • The number of claimants using anxiety and depression medications has grown over time and continued to exhibit amid-single digit annual growth in 2023.
  • The total costs for ADHD medication in the$500-$999 category increased by 24% in 2023, with the number of claimants up by20%.

Pharmacists are prescribing more than ever

  • The number of prescriptions initiated by pharmacists reached 6% in 2023, an increase of 140% since 2019.
  • In provinces where pharmacists are given a broader scope such as Quebec, this number was as high as 9%.  
  • Pharmacists tended to prescribe lower-cost and less complex medications within chronic disease states than other prescribers; the average cost of diabetes medications prescribed by pharmacists was 28%lower than those prescribed by doctors.

These findings highlight the reality thatCanada’s healthcare and pharmacy landscape is undergoing major change driven by a rising incidence of chronic health conditions. While managing chronic diseaserequires a comprehensive approach including preventative health interventions, medications remain the cornerstone of treatment for many.  

Filling in coverage gaps

Today, over a million Canadians do not have access to drug coverage. GreenShield has always believed all Canadians should have affordable access to prescription drug coverage. From its outset, thecompany was structured as a non-profit organization, reinvesting its excess earnings to advance health equity for underserved Canadians.

Last year, the non-profit introduced GreenShieldCares’ Essential Medicines program to provide prescription medications free of charge to eligible Ontarians without public or private drug coverage. Theorganization has now expanded the program to Nova Scotia with plans to roll out to other provinces next year.

GreenShield envisions a future where allCanadians can reach their fullest health and well-being potential regardless of background or circumstance. As a Fortune Change the World winner and one ofCanada’s Most Admired Cultures, the company accomplishes this by combining innovation in health and benefits with its social mission of Better Health forAll.

For media inquiries or further information, please contact: 

Sarah Mortimer, Communications Manager 

sarah.mortimer@greenshield.ca | 647-221-9037

About GreenShield 

AsCanada’s only national non-profit health and benefits company, GreenShield believes health care is a right, not a privilege. We’re dedicated to improving health outcomes, driving systemic change, and building a future where everyCanadian can reach their full health potential.  
 
We are revolutionizing the health and benefits experience through our unique integrated ‘payer-provider (‘payvider’) model, offering insurance, administering benefits, and paying claims as a ‘payer’ while offering healthservices such as mental health, pharmacy, telemedicine and chronic disease management as a ‘provider’. This uniquely combines coverage and care throughGreenShield’s ‘payvider’ model.  

We champion Better Health for All. As a non-profit social enterprise, we reinvest our excess earnings to directly support underserved communities through scalable GreenShield Cares initiatives that deliver real change. ThroughGreenShield Cares, we've committed $75 million to improve the health of over one million Canadians by the end of 2025. 

GreenShield is proud to be recognized as one of Canada's Most Admired Corporate Cultures, a leading Imagine Canada Caring Company, and named on Fortune’s Change theWorld list. 

‍GreenShield is comprised of three non-profit entities: Green ShieldCanada (GSC), GreenShield Association (GSA) and Green Shield Canada Foundation(GSCF), and GSA’s wholly owned subsidiaries, including Green Shield Health Inc.and Green Shield Administration Inc.