TELUS Health Report reveals how ultra-high-cost drugs, weight management and generics are reshaping Canada's private drug plans
"This year's data shows a system under productive pressure. More people in
The growing tension for plan sponsors to provide access to life-changing medical innovations while ensuring private drug plan sustainability is justified. Last year, specialty drugs accounted for 33.9 per cent of total eligible drug spend, despite only 2.1 per cent of claimants using them. The continued rise of ultra-high-cost drugs represented 5.2 per cent of total eligible drug spend in 2025. Trikafta (elexacaftor, tezacaftor and ivacaftor), a breakthrough therapy for cystic fibrosis, dominated this category at approximately
Key findings from the 2026 report include:
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More people in
Canada are using their drug plans: 61.8 per cent of insured plan members made at least one claim in 2025, up from 58.7 per cent in 2023. The average number of claims per claimant remained steady at 12.2, while the average annual eligible amount per claimant rose to$1,079.04 , up from$1,036.67 in 2024. -
Weight-management climbed six positions to rank 11th among all drug categories: The category grew 61.0 per cent in 2025 (after 104.0 per cent growth in 2024) and accounted for 2.5 per cent of total eligible drug spend. Two new developments will drive further growth in 2026:
- Zepbound (tirzepatide), capable of reducing body weight by up to 20 per cent, became available in
July 2025 and is expected to rapidly gain market share. - Generic Ozempic is expected in late 2026 at approximately 35 per cent of list price, reducing annual costs from
$1 ,500–$6,100 to $500–$2,100.
- Zepbound (tirzepatide), capable of reducing body weight by up to 20 per cent, became available in
- Skin disorders surge to second place: Skin disorders overtook inflammatory diseases to reach second place (9.9 per cent of total spend) driven by biologics Dupixent and Skyrizi becoming first-line therapies for atopic dermatitis and psoriasis. The category grew 13.6 per cent in eligible amount in 2025 and the average annual cost per claimant rose 14.2 per cent.
- Biosimilar adoption accelerates: 67.4 per cent of biologic claimants used a lower-cost biosimilar in 2025, up from 44.6 per cent in 2023, revealing a 51 per cent increase in two years. Generics reached 70.8 per cent of all claims.
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Canada's aging workforce drives disproportionate spend: Claimants aged 45–64 represent 38.5 per cent of claimants but account for 56.4 per cent of total eligible spend, indicating a structural pressure point for plan sponsors. -
National Pharmacare reshapes the landscape:
Canada's Pharmacare Act for diabetes drugs took effect inOctober 2024 , withManitoba and PEI launching programs in 2025 and BC inMarch 2026 . As more provinces join, private plan exposure to diabetes drugs, which is currently the number one category at 13.2 per cent of spend, is expected to decline. -
Atlantic Canada experienced the highest rate of growth:Atlantic Canada reported an average annual eligible amount per claimant at 5.5 per cent, compared to 4.1 per cent nationally and a low of 3.5 per cent inWestern Canada . The split between high-cost specialty and traditional drugs is highest inAtlantic Canada , resulting in the region outpacing national growth in costs.
"An evidence-based plan design is critical," adds Lee. "The convergence of ultra-high-cost therapies, a maturing weight-management market and the availability of generics means a thoughtful approach that balances the complex intersection of costs, medical innovations and regional policies is required to continue supporting the evolving healthcare needs of people in
Key provincial findings:
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Regional differences shaped by public policy:
- Thirty-day dispensing practices in
Quebec drive the highest national claim frequency (17.5 claims per person), resulting in a lower cost-per-claim but the highest total annual cost per claimant at$1,355.25 . - Universal drug plans in B.C.,
Saskatchewan , andManitoba keepWestern Canada's average annual cost at$787.41 , nearly 42 per cent lower than inQuebec .
- Thirty-day dispensing practices in
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Quebec's specialty market expands: The province led the country in cost-per-claim growth in 2025 (4.2 per cent vs. 3.2 percent nationally), fueled by a shifting specialty drug split. However, a stable utilization rate helps keep overall regional growth aligned with national averages. -
Specialty drugs and private plan use increase in the West:
Western Canada experienced the fastest growth in specialty drug share, rising 3.9 per cent in 2025 (compared to 3.7 per cent nationally) following a significant 8.4 per cent jump in 2024 (compared to 4.8 per cent nationally).
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