A new research paper published in the medical journal CMAJ Open has revealed that the number of individuals on Ontario’s catastrophic drug program has increased – and rising drug insurance costs might have played a hand.
The paper found that between 2000 and 2016, government spending for the provincial catastrophic drug program rose 735%. Also, in the same period, there was a threefold increase in the use of the plan.
“Our study illuminates the pressure facing Canadians due to rising drug costs,” said Dr. Mina Tadrous, a research associate with the Ontario Drug Policy Research Network. “Catastrophic drug programs are the last line of defense for helping protect citizens from drug expenses that threaten their family’s financial security.”
To join the program, residents must first have “catastrophic” drug costs – which means they are spending more than 3-4% of annual after-tax household income on prescription drugs. They must also be under 65 years of age.
The report has identified changes to insurance coverage for workers over the past couple of years as one of the factors for the increase in catastrophic drug program usage.
According to the report, employers – pressured by increasing prices – are hiking deductibles and reducing the number of drugs covered by their plans. The study also suggests that some employers might be palming off employees who are on drug programs such as the Trillium Drug Program in an effort to save on costs.
Other significant findings of the report include:
“With a larger number of expensive drugs currently under development, continued pressure on private insurers to control costs, and changing insurance coverage for workers, we anticipate that use of catastrophic drug programs, will continue to grow,” Dr. Tadrous concluded.
