how improving health literacy in canada could save billions

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people with low health literacy spend almost three times the amount on healthcare costs than those with high health literacy.

by angelica bottaro

published may 21, 2025

4 minute read

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4 minute read

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awareness, education, and community engagement are all parts of an investment that could change health literacy in canada. getty images

roughly 60 per cent of all canadians lack the ability to both understand health information and use it to their advantage. that number jumps to 88 per cent for adults over the age of 65.

this knowledge, known as health literacy, is a strong predictor of the health status of these individuals because without understanding what it takes to take care of oneself, overall health and quality of life suffer.

according to a new health inclusivity report by economist impact, supported by haleon, the high levels of health illiteracy in the country result in significant costs for individuals, both health-wise and financially. it’s estimated that the annual cost of low healthy literacy in canada sits at roughly $8,000 cad per person.

reasons behind high health illiteracy

several factors contribute to low health literacy in the country. many people struggle to understand health information provided to them, and when there is a lack of understanding, knowing what to do with that information is impossible.

navigating the healthcare system can also be a struggle for people who are not well-versed in what that looks like, along with making informed decisions about how they will and can receive care for acute or chronic diseases.

in turn, people will often end up delaying much-needed treatment through no fault of their own, or using emergency services and going for hospital admissions at a much higher rate than those who fall into a higher health literacy category.

there are several reasons why people may experience low health literacy, while others don’t, including socioeconomic status, education level, language barriers, and cognitive skills. age can also make it difficult for people to achieve a higher level of health literacy, as changes in their abilities to process information occur.

a lack of access to quality education and healthcare also plays a role, as well as misunderstanding medical jargon or stress and fear related to health outcomes.

underserved groups, including people who have lower incomes, women, or older adults, tend to be the most affected by a lack of health literacy.

the financial consequences

when examining the financial consequences alone, data indicate that individuals with low health literacy often incur significantly higher healthcare costs than their more health-literate counterparts.

overall, people with low health literacy spend almost three times as much on prescriptions, medical visits, and er costs combined, at around $8,000 cad per person, compared to around $2,900 cad for those who fall into the highly health literate category.

the bulk of those higher expenses are for prescription medications. for example, individuals with low health literacy spend almost 20 per cent more on prescription medication costs than those with high literacy.

this is likely due to the need for medications resulting from delayed diagnoses of conditions or limited access to preventive care measures that could lead to improved health outcomes. mismanaged chronic diseases can also lead to higher prescription costs.

the health consequences

aside from costs, those with low health literacy often experience far worse health and health outcomes. for example, people who do not understand their health or how to navigate the healthcare system are at a higher risk of developing chronic diseases, including diabetes, heart disease, and all-cause mortality.

higher rates of depression and anxiety, as well as unhealthy behaviours such as smoking, a lack of physical activity, and poor eating habits, can all be seen in people with lower health literacy, amplifying poor health outcomes even further.

they may also have a more challenging time caring for chronic disease due to non-adherence to their medication, leading to a higher incidence of adverse effects as well as worsened complications or exacerbations of their disease.

a decrease in the use of preventive services is also high among people with low health literacy, which overall hinders them from taking the necessary steps to prevent disease and maintain a good quality of health and life.

improving health literacy in canada

according to the report, improving health literacy by only 25 per cent is an excellent first step to help these populations take control of their health in a viable and effective way. in canada alone, an improvement in health literacy among these low-literacy groups could result in a significant decrease in costs, amounting to approximately us$7.8 billion saved.

“the health inclusivity index, developed by economist impact and supported by haleon, provides clear evidence that inclusive health is not a cost, it’s an investment,” said sarah mcdonald, vp sustainability at haleon, in a press release.

investment in healthcare literacy would involve improving education and awareness, providing access to care and communication pathways, and engaging in intersectoral collaboration that can benefit communities.

as of the time of writing, no specific plan is in place in the country to implement these measures; however, smaller companies and organizations, such as haleon, continue to take steps to improve the health literacy of canadians.

angelica bottaro

angelica bottaro is the lead editor at healthing.ca, and has been content writing for over a decade, specializing in all things health. her goal as a health journalist is to bring awareness and information to people that they can use as an additional tool toward their own optimal health.