The Rise of GLP-1 Medications in Canada: A Key Trend to Watch in 2025
To help our clients, we closely monitor prescription drug trends. One of the most significant shifts in recent years has been the rise of GLP-1 medications in Canada. We have seen a substantial increase in utilization, aligning with broader market trends. Over the past year, the number of diabetes prescriptions written for GLP-1 medications has surged by more than 30%, according to national insurers, and this growth shows no signs of slowing.
The increased demand for these drugs is largely driven by employees seeking newer-to-market options for diabetes management. GLP-1 receptor agonists, such as Ozempic, have gained widespread recognition for their efficacy, making them a top choice for diabetes treatment. Ozempic is quickly becoming the #1 drug spend in many Canadian private plans. Also notable is that GLP-1s used to treat type 2 diabetes like Ozempic are also being used off-label for weight management, fueling even greater demand.
With the recent approval of Wegovy for weight loss in Canada, the conversation around GLP-1s is shifting beyond diabetes management. More Canadian employees are inquiring about coverage for weight loss medications within their private benefits plans, a trend that closely mirrors what we’ve seen in the US, which is a couple of years ahead of Canada with these types of drugs. This trend is becoming a key factor in employee recruitment and retention, suggesting that employers who offer coverage may gain a competitive advantage.
While some private plans cover GLP-1s for diabetes treatment, there is still a lack of clarity on weight loss coverage. This uncertainty has led many employees—particularly women between the ages of 45 and 55—to pay out-of-pocket for these medications.
As we move into 2025, GLP-1 medications will undoubtedly remain a dominant trend in the benefits landscape. Employers and insurers alike will need to assess their approach to coverage, balancing cost management with employee expectations.
At Gallagher, we are committed to helping employers navigate this evolving landscape, ensuring that benefits strategies align with both business goals and employee needs. The rise of GLP-1 medications is not just a passing trend—it’s a fundamental shift in how chronic conditions like diabetes and obesity are managed in Canada.