Weight management medications emerged as the fastest growing drug category in 2024, with claims for these drugs surging by 90.6 per cent since 2023, according to Telus Health’s annual drug report.
The report, which is based on claims data from more than 15 million plan members in 2024, found the increase in claims was driven by the launch of Wegovy in Canada. It also noted the focus on weight management aligns with growing health concerns among plan sponsors and members, citing a recent Statistics Canada report that found 30.2 per cent of people in Canada were considered obese and 35.5 per cent were considered overweight in 2023.
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Employees submitted an average of $1,338 in eligible claims to private drug plans, an increase of 4.7 per cent since 2023. Six in 10 (60.5 per cent) plan members made at least one claim in 2024, slightly more than in 2023 (58.7 per cent). These claimants submitted an average of 12.1 claims each, virtually unchanged from 2023 (12). The average eligible amount per claim increased by 2.4 per cent, from $83.53 in 2023 to $85.52 in 2024. Each claimant’s average annual eligible amount for all claims was $1,037.95 in 2024, up 3.3 per cent from $1,005.03 in 2023.
Claimants aged 45 to 64 accounted for slightly more than a third of all claimants, more than half of all claims and more than half of the total eligible amount. The total average eligible amount in this age group was $1,487.02 per claimant.
According to the report, Quebec had the highest regional average at $1,591, while Western Canada had the lowest at $942, influenced by provincial pharmacare plans. In addition, Atlantic and Western Canada showed below-average growth in annual eligible amounts — 2.9 per cent and two per cent, respectively —compared to the national average of 4.7 per cent.
Read: Private benefits plan sponsors’ prescription drug costs up 12.9% in 2023: report
Claims for generic medications continued to increase in 2024, reaching 68.8 per cent of all prescriptions covered by private drug plans. However, generics accounted for only 26.8 per cent of the eligible amount per certificate, demonstrating significant cost savings.
The report also found the impact of biosimilar switching policies continues to grow, with four regions — Yukon, Manitoba, Prince Edward Island and Newfoundland and Labrador — implementing new biosimilars requirements in the past year. More than half (56.9 per cent) of biologic drug claimants used biosimilars in 2024, a 27.6 per cent increase from 2023.
“Private sector drug plans protect and increase access to pharmaceutical care, but they are in constant need of expert adjustment to ensure they continue to meet the needs of people in Canada,” said Martin Bélanger, senior vice-president of payer and provider solutions at Telus Health, in the release.
“During these uncertain times, we will continue to drive innovation by providing clarity on key trends, helping businesses identify opportunities to improve cost management, while making informed coverage decisions that will help their employees live healthier and happier lives.”
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