iAtoday

Group Benefits
and Retirement Solutions

iA iA

White paper | Medications: When cost-cutting proves costly

Top stories October 22, 2026
Print

Spending on prescription drug claims under private plans has surged by 83% over the past 10 years1 in Canada, and all signs point to this trend continuing.

As this pressure continues to mount, organizations are looking for ways to balance the sustainability of their drug plans with the health of plan members. Yet drug spending on its own does not provide a complete picture of a plan’s performance.

In our white paper, Medications: When cost-cutting proves costly, we explore ways to manage costs effectively while focusing on outcomes, potential cost avoidance and the overall value delivered by the plan.

 

Download the white paper

 

“A drug’s cost reflects what the plan paid, but it says nothing about what the treatment helped prevent, maintain or improve.”

Frédéric Leblanc, Strategic Lead, Products and Drug Programs

 

Reducing spending on prescription drugs can lead to increased costs elsewhere in the organization, including disability, absenteeism and presenteeism. As a result, decisions should be informed by a wide-ranging assessment of their impacts. 

     

In this white paper, you will learn:

  • Why cost alone is an incomplete measure of plan performance
  • How optimal medication use can generate value
  • The indicators that provide a clearer picture of outcomes and cost avoidance
  • How to transform plan data into informed decisions 

 

Help your clients make better decisions

Not all cost increases are equal. In some cases, costs may signal a need for support; in others, they may reflect improved access to treatment or to drug innovations that help people stay healthier and remain at work. To evaluate a plan effectively, it is essential to understand the factors driving those costs.

 

“The lowest-cost medication is not necessarily the one that delivers the best value. The real challenge is finding the right treatment for the right person at the right time.”

Erika Hatherly, Strategic Leader, Drug Programs

 

Our white paper provides a foundation for meaningful discussions with your clients, helping them make sense of their plan data and pinpoint improvement opportunities that align cost control, health outcomes and value for the organization. A great way to maximize the value of your advisory role!

 

Insights: inform and inspire

Trends, issues, viewpoints, diverse and innovative solutions: content that combines our know-how with a visionary perspective to better understand the evolution of the industry and inspire action.

Discover our thought leadership space

 

1 Innovative Medicines Canada, 2025 Cost Drivers Report, 2025

 
arrow_back Back to current issue