01 Sep Insight into Canada’s Drug Pipeline and the Impact to Group Benefit Plans
Currently there are more than 150 drugs awaiting approval by Health Canada. Many of the drugs in the pipeline are breakthrough therapies that impact the health of millions of Canadians.
When a drug is approved by Health Canada and assigned a Drug Identification Number (DIN), they are added to the formulary of the insurance company or claims payor. Subsequently, these approved drugs can be claimed under your Group Benefit Programs.
The biggest impact on Group Benefit Plans is anticipated to be for the following drugs:
Reyvow
- This drug would be the first new drug to treat acute migraines in almost 30 years.
- 3.1 million Canadians suffer from migraine headaches.
- Approval is expected Summer 2021, with the anticipated cost of over $600 per dose.
Leqvio
- This drug is used to treat high cholesterol, a condition that affects almost 40% of Canadian adults.
- Considered a PCSK9 drug, it would be administered by injection twice a year.
- Approval expected in 2022, the anticipated cost will be $10,000 per injection.
Vumerity
- This drug is for the treatment of Multiple Sclerosis, a condition that affects about 77,000 Canadians.
- It is important to note that drugs for Multiple Sclerosis rank eighth in the list of top ten drugs by cost.
- Approval is expected Summer 2021, the cost is expected to be at least $30,000 annually.
Dayvigo
- For the treatment of insomnia, a condition that affects about 5 million Canadians, this drug represents a breakout treatment as it does not involve sedation.
- Approval is imminent, with the expected cost to be around $20 a tablet.
While medical advances are impressive and important in the treatment of a variety of conditions, at JRP we have the affordability and sustainability of Group Benefit Programs top of mind. The landscape of prescription drugs is constantly changing and having high cost drugs in benefit plans is becoming the norm.
As Health Canada approves new drugs, how will your Group Benefits Plan be impacted? What steps are in place to control the drug formulary that is used in the payment of drug claims for your plan? Are you aware of the medical conditions that the high cost drugs being claimed under your plan treat? This information can reveal a lot about the health of your members and the future cost of your Benefits Program.
It is time to think differently about the benefits you offer in your Group Benefits Program. It is no longer conceivable to look at your Group Benefit Plan once a year, at renewal time. This is YOUR benefits program. Learn how to protect it today so it can be sustained into the future.
Contact JRP today – under our watch, we will manage your investment of benefits as if it was our own, 365 days a year. The future of benefits starts here.
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