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The National Pulse - June 2026

  • Jun 12
  • 3 min read

Cost Drivers and Cost Moderators

HEALTH CARE INFLATION

Canada’s medical trend rate is expected to reach 8.3% in 2026, up from 7.4% in 2025. This is far greater than general inflation, which is expected to remain at approximately 2.1%.


What is driving healthcare inflation?

  • Utilization increases and rapid adoption of advanced medical technologies are pushing costs higher.

  • GLP-1s and similar drugs are a major emerging cost pressure.

  • Plan costs are being driven by cardiovascular disease, cancer, hypertension. Musculoskeletal conditions have entered the global top five most costly conditions due to growing prevalence of disorders.

GENERIC GLP-1S LANDING IN PHARMACIES ACROSS CANADA

Two generic semaglutide products (GLP-1s) have started hitting pharmacy shelves. Generics are expected to reduce overall drug cost trend and cost approximately ⅓ of the brand name equivalent in most jurisdictions. 


DENTAL FEE GUIDE ADJUSTMENTS AFFECTING YOUR 2026 BENEFITS RENEWALS

The post-pandemic surge in dental fee guide increases appears to be moderating, but costs are still climbing above historical norms. The lowest fee guide increase across Canada was Saskatchewan at 2.12%, while Alberta saw the highest increase at 4.12%.

Province / Territory

2025 Adjustment

2026 Adjustment

Alberta

4.12%

4.12%

British Columbia

3.27%

3.27%

Manitoba

3.10%

4.03%

New Brunswick

3.50%

2.70%

Newfoundland & Labrador

3.00%

3.00%

Northwest Territories

3.00%

3.00%

Nova Scotia

3.81%

3.81%

Nunavut

3.00%

3.00%

Ontario

2.03%

3.32%

Prince Edward Island

3.97%

3.97%

Quebec

4.50%

3.40%

Saskatchewan

3.63%

3.63%

Yukon

3.28%

3.28%

NATIONAL PHARMACARE UPDATE

Bill C-64, the Pharmacare Act, became law in October 2024. It provides coverage for certain diabetes treatments and contraception in provinces that reach bilateral agreements with the federal government.


So far, BC, Manitoba, Yukon and PEI have signed agreements.

  • BC’s program launched March 1, 2026. Since their provincial program already offered coverage for contraceptives, BC is using national  funding to provide coverage for menopausal Hormone Replacement Therapy (HRT).

  • Yukon launched on April 15, 2026.


Ottawa’s Spring 2026 Economic Update appears to signal that there will be no new federal funding for additional pharmacare deals. Health funding from the federal government is projected to drop, and a national expansion of the program does not seem to be on the horizon. 


The therapies included in the Pharmacare act were never expected to have a significant impact on plan costs. 



Free Resources for Mental Health Support

The numbers are getting harder to ignore. Ten million Canadians currently report having “poor” or “fair” mental health – 3 times more than before the pandemic, according to the Canadian Mental Health Foundation. 


Experts recommend that employers offer between $3,500 and $4,000 of mental health care in their plan each year, but this is not always possible.


Mental Health continues to drive drug costs, impact employee productivity, and overall wellbeing. Here are some resources that you can share with your team:

  • Canada.ca/Mental-Health: This Government of Canada site lists an array of mental health resources and services available in every province and territory. Canada.ca/mental-health 

  • 9-8-8 Suicide Crisis Helpline: Call or text 9-8-8, 24/7 in English and French. Connects Canadians to local crisis centres, distress lines, and suicide prevention resources nationwide. 988.ca

  • Kids Help Phone: Call 1-800-668-6868 or text HELLO to 686868. Free 24/7 youth support. Kidshelpphone.ca

  • CAMH: Canada’s top mental health hospital offers free tools, guides, and information on conditions and treatments. CAMH Mental Health Toolkit | Free Resources & Support

  • Canadian Mental Health Association: With 330 community locations, CMHA is a nationwide organization that promotes mental health and supports people recovering from mental illness. It includes resources for manager training (Not Myself Today) and links to self-guided mental health support programs like BounceBack. cmha.ca


Focus on Men’s Mental Health Programs

Men are 50% more likely to commit suicide, often delay getting care, and may experience additional barriers to seeking mental health support due to stigma. 


These resources are dedicated to promoting men’s mental health.



Focus on Indigenous Mental Health Programs

  • Hope for Wellness: This online chat or call centre is available 24/7 to all Indigenous people across Canada. hopeforwellness.ca




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