TORONTO, ONTARIO – January 22, 2007 – Green Shield Canada is pleased to announce the completion of our 2006 Drug Claims Research. This is Green Shield Canada’s fifth analysis of drug claims and costs since the original study published in 1992. The new report covers six years of data and is one of the most comprehensive studies in the industry.
Some high level findings
- Drug costs increased at a compound annual rate of 7.6%.
- 5% of claimants were responsible for 40.3% of total program costs.
- Generic drugs account for 37.7% of claims but only 16% of the costs.
- Formularies ensure the right drug for the right person at the right time.
While it is clear that costs are rising, our data showed that some costs were stabilizing. This is no surprise to Green Shield, but it contradicts what many studies are claiming. So how can we claim that growth rates are slowing? Simply put, our data reflect the cost management strategies a number of our customers have adopted.
Help improve plan designs by understanding drug utilization and costs
Rising drug plan costs are a result of a large number of inter-related factors such as the aging population, new drugs, drug price changes, government policies, and medical developments. Green Shield Canada believes that although some of these factors are beyond a plan sponsor’s total control, there are ways to manage drug plan costs to minimize the effects of external pressures. “We believe that with good management practices and long-term planning, plan sponsors can achieve a level of control over their benefit plans even when government regulation, medical discoveries and other forces change the environment.” says Steve Moffatt, Vice President of Sales and Marketing at Green Shield Canada.
For those interested in looking at a snapshot of the research results, we have published an Executive Summary in the January 2007 issue of Benefits Canada and the February 2007 issue of Canadian Healthcare Manager. Please contact a Green Shield Canada Account Executive for a print copy of the summary or click here for an electronic version.
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For questions or comments, please contact:
Steve Moffatt
Vice President of Sales and Marketing
Green Shield Canada
416-221-7001 Ext. 247
Steve.Moffatt@greenshield.ca |