Spending on specialty drugs rose by more than 12% in Canada last year, the biggest annual increase in over a decade, finds a report.
Express Scripts Canada’s annual Drug Trend Report says high-cost prescription drugs are significantly threatening the ability of private sector employers to offer a comprehensive prescription drug benefit to employees.
Read: High-cost prescription drug claims double
Here are some highlights:
- the cost of specialty drug benefit plans continues to increase: While these drugs represent only 2% of claims, they represent 26.5% of spending (up from 24.2% in 2013), a number expected to reach 35% in the next five years (this forecast suggests that specialty drug spend will continue to be the significant cost driver for benefit plans);
- soaring demand for expensive new drugs: Prescription drug spending is rising at an unprecedented and unsustainable rate driven in large part by price increases for new specialty medications (for example, new hepatitis C medication Harvoni is priced at $71,000 per 12-week treatment); and
- high-cost claimants dominate spending: The top 1% of all claimants comprised 28% of total spending in 2014 (total spending for the top 1% is equal to that of the bottom 85%).
Read: Pharmacy management strategies reduce costs by up to 24%
“Pharmacy benefits have become one of the most high-profile areas of employee health plans, from both an economic and employee satisfaction standpoint,” says Michael Biskey, president of Express Scripts Canada. “The day may come when employers might not be able to afford the prescription drug benefit.”
The report is based on millions of drug claims from more than seven million Canadians.
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