A new report from TELUS Health suggests rising prescription drug costs are continuing to put pressure on both public and private health plans across Canada, including in Saskatchewan.
Vicki Lee, director of pharmacy consulting and professional services with TELUS Health, said the company’s annual drug trends report shows growing use of high-cost specialty medications and increasing demand for prescription coverage.
“We’re seeing more and more claimants using their drug plans,” Lee said during an interview. “We’re seeing higher spend on drug plans in general with growth in the specialty space.”
Specialty drugs driving higher costs
Lee said specialty drugs are typically defined as medications costing $10,000 or more annually and are becoming a larger share of prescription spending.
The report groups Saskatchewan with other western provinces because provincial pharmacare programs in the region often act as the first payer, creating a different dynamic compared to eastern provinces where private plans typically pay first.
Lee said while more patients are gaining access to innovative treatments, the increased costs are placing added pressure on health plans and insurers.
“I think what patients will start seeing is there’s more programs in place to make sure that plans stay sustainable,” Lee said.
She noted some patients may encounter additional approval requirements, including prior authorization programs designed to ensure high-cost therapies are prescribed to patients most likely to benefit from them.
New therapies improving treatment options
Despite the rising costs, Lee said the report also highlights positive developments within the pharmaceutical sector, including increased access to innovative therapies for conditions that previously had limited treatment options.
“There seems to be a lot more focus from manufacturers on rare diseases and areas of therapeutics that didn’t have options before,” Lee said.
The report also noted broader adoption of generic and biosimilar medications, which can offer the same treatment benefits as brand-name drugs at a lower cost. Lee said that trend could help improve long-term sustainability for public and private drug plans.
Weight management medications, including newer therapies such as Wegovy and Zepbound, are also becoming more widely covered under insurance plans as more effective treatment options enter the market.