Cost Drivers Analysis of Private Drug Plans in Canada 2012-2016
Innovative Medicines Canada engaged IQVIA in 2016 to create an annual Private Drug Plan Drug Cost Forecast which included a baseline analysis that projected forward using actual historical private drug plan drug costs. An updated forecast will be released later in 2018.
This analysis takes a closer look at the private market claims data in order to highlight the key drivers of private drug plan cost growth for the period between 2012 and 2016. Often the total growth of the private drug plan market is simply reported without any details on what factors in claimant behavior are influencing total plan costs. Prior reports have identified significant growth due to greater utilization of drugs, however they did not provide details explaining utilization growth. This report will clarify the underlying drivers of cost growth, including utilization, in private drug plans in Canada.