The latest report from Beneva outlines how recent developments in medical treatment are putting increased financial pressure on group insurance plans.
The 2025 health trends and insights report examines trends such as the use of new obesity and diabetes medications, the shift toward biosimilars, and rising costs associated with cancer therapies.
According to the report, spending on the anti-obesity drug Wegovy reached $10.2 million in 2024, just months after it entered the Canadian market in May. Beneva estimates that figure could rise to over $25 million in 2025 if current patterns continue.
The report also notes the continued growth in the prevalence of Type 2 diabetes, with annual case numbers increasing by nearly 5% from 2015 to 2024. The average claim cost for individuals with the condition is estimated at $3,300 per year—more than three times that of individuals without diabetes.
Shifts in prescription drug use were also highlighted. In 2020, Remicade was the most commonly claimed drug under group plans. By 2024, it had dropped to 23rd place, as its biosimilar, Renflexis, gained market share. The report points to this transition as part of a broader trend toward cost containment through the adoption of lower-cost alternatives.
Cancer treatment costs have also risen sharply. Total spending on cancer therapies nearly quadrupled over the past decade, while the average cost per course of treatment rose from $7,800 in 2014 to $14,700 in 2024.
Beneva says managing these pressures requires a balance between maintaining access to care and controlling costs.
"As a mutual insurance company, we want to offer our members peace of mind and optimize their access to healthcare. Beneva's success lies in keeping plan costs as low as feasibly possible,” said Éric Trudel, Executive Vice-President of Group Insurance at Beneva.
“According to our experts, long-term plan sustainability can be achieved through an optimized drug management strategy as well as through our integrated and comprehensive health and wellness offer for plan sponsors.”
First published in 2024, Beneva’s annual health trends and insights report aims to provide group plan stakeholders with information on issues influencing benefits strategy and plan sustainability.
