Canadian Life and Health Insurance Facts, 2022 Edition

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Page 15 of 29

15 Canadian Life & Health Insurance Facts // 2022 Edition Health insurance Health insurance provides coverage for hospital and medical expenses not covered by public health plans, such as prescription medicines, vision care, dental care and mental health supports. This type of insurance can also provide income replacement for those unable to work due to disability. Sold as: Ninety per cent of health insurance is purchased through a group plan. 2021 health premiums $ 51.1B Group plans Individual policies Related products: Supplementary health insurance; travel insurance; critical illness insurance; disability insurance; accidental death and dismemberment insurance; and health care spending accounts. 90% 10% Cost-effective health protection At 86 per cent, the vast majority of health insurance premiums are paid out as benefits to policyholders (5-year average). Helping patients with access to specialty drugs Specialty drugs are used to treat serious, chronic, and complex health conditions, making conditions more manageable. Their increased use in recent years has been a driver of higher claims costs. In 2021, year-over-year spend per plan member for specialty drugs increased by 6.8 per cent, compared to less than four per cent for traditional drugs. Specialty drugs now represent 29 per cent of total drug spend.* 86% paid out to policyholders as benefits 8% operating costs 3% taxes 3% profits

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