Written by HALO Staff Member, Health And Legacy Organization
September 18, 2026 • 3 min read
Step therapy, often termed 'fail-first' policies, mandates patients to try less costly drugs before accessing newer, potentially more effective treatments. This article examines the implications of these policies on patient health and healthcare systems.
Step therapy policies, also known as 'fail-first' protocols, have been a contentious issue in the healthcare sector, significantly affecting patients' access to advanced medications. These policies require patients to first try older, cheaper drugs and demonstrate their ineffectiveness before being granted access to newer, more expensive treatments. While designed to manage healthcare costs, these policies can delay access to vital medications, particularly for individuals with chronic or severe conditions.
### Understanding Step Therapy
Step therapy was introduced as a cost-control measure within provincial health plans and has since been adopted by private insurers. The principle is simple: ensure the efficacy of less expensive treatments before moving to costly alternatives. However, this approach can prolong patient suffering and potentially worsen health conditions due to delayed access to effective treatment.
### Real-Life Impacts
Consider the cases of Josh Berman and Will Florence. Berman, diagnosed with ulcerative colitis, experienced significant delays in receiving effective medication due to step therapy, affecting his quality of life. Similarly, Florence's epilepsy treatment was stalled as he awaited approval for a necessary surgical procedure, all while enduring ineffective medication trials.
### Economic and Systemic Consequences
Delayed access to effective treatment not only affects individual health but also has broader economic implications. The Public Health Agency of Canada notes that chronic disease costs the economy $122 billion annually in indirect income and productivity losses. Step therapy policies, while intended to economize healthcare spending, may inadvertently contribute to these costs by delaying effective care.
### Biologics and Biosimilars: The Treatment Frontier
Newer treatments, particularly biologics and biosimilars, offer targeted solutions for conditions like IBD, rheumatoid arthritis, and multiple sclerosis. These drugs are often more effective but come with higher price tags. Step therapy policies typically require patients to first try less expensive options, which may not be as beneficial or tailored to the patient's specific needs.
### Policy Reassessment and Future Directions
There is a growing call for the reassessment of step therapy policies. Critics argue that while cost management is crucial, it should not come at the expense of patient health and timely access to effective treatments. Policymakers are encouraged to consider more flexible approaches that balance cost control with the need for rapid access to innovative therapies.
### Takeaway
Step therapy aims to control healthcare costs but often at the expense of timely patient care. As the healthcare landscape evolves with new drug developments, step therapy policies must adapt to ensure that patients receive the best possible treatment promptly.
Frequently Asked Questions
What is step therapy?
Step therapy is a policy that requires patients to try less expensive drugs before being granted access to newer, more costly medications.
How does step therapy affect patients?
Step therapy can delay access to effective medications, prolonging patient suffering and potentially worsening health conditions.
Why were step therapy policies introduced?
These policies were introduced to manage healthcare costs by ensuring less expensive treatments are tried first.
What are biologics?
Biologics are complex drugs that target specific parts of the immune system and are often used to treat chronic and inflammatory conditions.
What are the economic implications of step therapy?
Step therapy can contribute to economic losses by delaying effective treatment, leading to increased healthcare costs and reduced productivity.