Costs for pharmaceuticals in 2009 have increased by 15.19 percent, dramatically reversing a four-year downward trend in prescription drug prices, according to survey findings released today by Buck Consultants, an ACS company.
TORONTO: June 18, 2009 – Costs for pharmaceuticals in 2009 have increased by 15.19 percent, dramatically reversing a four-year downward trend in prescription drug prices, according to survey findings released today by Buck Consultants, an ACS company. The 2009 Canadian Health Care Trend Survey, the firm’s ninth annual study, analyzed responses from 11 major Canadian insurers.
Prescription drug costs still represent the largest portion of employer health care costs. “Medications for the treatment of cancer, depression, rheumatoid arthritis and cardiovascular conditions in an aging workforce are the main contributing factors to this upswing,” said Michele Bossi, practice leader in Buck’s Health and Productivity consulting practice.
The overall health care trend (including prescription drugs, medical plans, hospital coverage, and dental care) continues to increase at just under 15 percent, up from 13.76 percent in 2008. The cost increase for medical plans (excluding prescription drugs) has climbed to 14.14 percent for 2009 from 13.09 percent in 2008.
Many employers, having already implemented plan design changes to curb cost trends, are beginning to shift to a proactive approach to health care cost containment.
“Perhaps the most immediate impact on the rate of total health care cost increases in Canada may be nervous employees facing an economic downturn and taking advantage of every benefit offered to them during this time of uncertainty,” said Bossi. “Wellness programs continue to gain momentum as a way not only to control costs, but to reduce absenteeism, increase productivity, and improve employee engagement.”
Buck’s Canadian Health Care Trend Survey summarizes the trend factors used by major Canadian group insurers to project future health care plan costs for calendar year 2009 and into 2010. The survey compares current trends to results for the previous four years. The study provides trend factors by type of coverage: medical plans, hospital, prescription drugs, and dental care. Trend factors for each benefit are segregated into utilization and inflation components (except for dental care).
The complete survey report is available at: www.bucksurveys.com or visit www.acsbuckcanada.com and click on Publications > Surveys.
Buck Consultants, an ACS company provides a full range of human resource consulting and administration services, and has been providing HR consulting and actuarial services in the Canadian marketplace for more than 35 years. Our Canadian suite of services includes Health and Productivity Consulting, Total Benefit Outsourcing services for traditional and flexible group benefit plans, Capital Accumulation Plans, and Defined Benefit pension plans, Retirement Consulting (including actuarial services and tax and legal consulting), Investment Consulting, and Communications Services. News and other information about Buck and ACS Inc. is available at www.acsbuckcanada.com.
ACS, a global FORTUNE 500 company with 74,000 people supporting client operations reaching 100 countries, provides business process outsourcing and information technology solutions to world-class commercial and government clients. The Company’s Class A common stock trades on the New York Stock Exchange under the symbol “ACS.” Visit ACS on the Internet at www.acs-inc.com.
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