Insurance mutual Beneva has announced annual savings of more than $71 million for its group insurance partners and plan members through a four-pronged prescription drug management strategy.
The approach, which involves mandatory biosimilar transitions, pharmaceutical agreements, a prior authorization program, and step therapy, is designed to control rising prescription costs and improve access to essential treatments, a news release noted.
“Global Biosimilars Week is the perfect opportunity to highlight the importance of improving access to treatment and optimizing prescription drug costs,” said Éric Trudel, Beneva’s executive vice president and leader of group insurance. “Since it was founded, Beneva’s approach has always been to integrate innovative solutions into its group benefits plans to enhance the well-being of plan members and allow plan sponsors to make actual savings.”
Transitioning from biologic drugs to biosimilars—medications with similar efficacy but lower costs—has been a central focus. In 2022, Beneva introduced mandatory biosimilar transitions, a move that reduced costs by approximately $51 million this year alone. With prices for biosimilars ranging from 10% to 40% lower than biologics, this strategy offsets the rising expenses in group insurance plans. The transition is supported by online resources and clear exemption criteria to ensure accessibility and transparency.
Alongside biosimilars, Beneva has forged product listing agreements that offer a 12% average discount on more than 50 prescription drugs, yielding $20 million in annual savings. The news release noted that these agreements help lower premium rates, especially beneficial for clients managing chronic conditions.
The company’s prior authorization program, covering over 300 molecules, assesses drugs for medical necessity and cost-effectiveness before coverage. To further streamline spending, Beneva has integrated step therapy, a system that encourages plan members to start with more affordable drugs and only progress to higher-cost treatments if necessary. This method balances effective treatment options with comprehensive, sustainable coverage.
Formed through the merger of La Capitale and SSQ Insurance, Beneva serves over 3.5 million members and clients across Canada, employing 5,500 staff with a focus on mutualist values and a people-centered approach. Beneva, headquartered in Quebec City, manages $25.2 billion in assets.
Do you have something to say about this story? Let us know in the comments below.
