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Canadians Spending $12.3 Billion
A Year On Prescription Drugs

Canada NewsWire
Candian Institute For Health Information
www.cihi.ca
4-25-2

OTTAWA (CNW) - Spending on prescribed drugs is projected to have reached $12.3 billion in 2001, an increase of 10.6% over 2000, according to a new report released today by the Canadian Institute for Health Information (CIHI). Total spending on drugs, both prescribed and non- prescribed, was estimated at $15.5 billion in 2001.
 
Since 1997, spending on drugs has represented the second largest category of health expenditures next to hospital services. In 2001, spending on drugs is expected to have consumed an increased share of Canada's health care dollar, accounting for 15.2% of total health care spending compared to 14.9% in 2000.
 
"From 1985 to 1992, Canada's total drug expenditure grew at an average annual rate of 12.1%. The mid-1990s represented a period of slower growth in total drug spending, with an average annual rate of increase of 4.9% from 1992 to 1996," explains pharmacist Lynn Brousseau who is CIHI's Manager of Drug Utilization and Mental Health. "In the last five years, however, higher growth rates in total drug spending have resumed, with an average annual rate of growth of 8.7% from 1997 to 2001."
 
According to CIHI's report, the growth in drug expenditure during the past five years was driven primarily by an increase in prescribed drug spending, which has risen by 46.4% since 1997 (from $8.4 billion to $12.3 billion).
 
TOTAL DRUG EXPENDITURE - PRESCRIBED AND NON-PRESCRIBED
 
In 2001, spending on prescribed drugs is projected to have reached $12.3 billion, an increase of 10.6% over the previous year. Prescribed drugs now account for 79.1% of total drug spending.
 
In contrast, non-prescribed drugs (such as over-the-counter medications and personal health supplies) cost an estimated $3.3 billion in 2001 representing a 1.7% increase over 2000.
 
PER CAPITA SPENDING ON DRUGS
 
In 2001, Canadians on average spent an estimated $500 each on drugs, an increase of 7.6% over the previous year.
 
PRESCRIBED DRUG EXPENDITURE - PUBLIC AND PRIVATE SECTORS
 
CIHI's figures indicate that public sector spending on prescribed drugs has been increasing at a faster rate than private sector spending in recent years. Public sector expenditure on prescribed drugs is expected to have risen to $6.0 billion in 2001, almost matching the amount spent on prescribed drugs by the private sector, at $6.2 billion dollars in 2001.
 
The share of prescribed drugs in public health care spending has more than doubled since 1985. Drug spending, which accounted for only 3.7% in 1985, is estimated to have reached 8.1% in 2001. During the same period, the share of prescribed drugs in private health care spending (including private insurance and out-of-pocket expenditure) has remained relatively stable at about 30% each year from 1985 to 2001.
 
PROVINCIAL COMPARISONS
 
"Spending on drugs varies across the country," says Ms. Brousseau. "Drug expenditures are influenced by multiple inter-related factors such as the comprehensiveness and universality of drug subsidy programs, variations in the age and sex distribution of the population, the health needs of the population, and methods of health service delivery."
 
In 1999, the latest year for which detailed data are available, drug expenditure per capita among the provinces ranged from $482 in Ontario to $362 in British Columbia. Ontario ($482), Prince Edward Island ($463), and Nova Scotia ($458) spent the most per capita on drugs while Saskatchewan ($379), Manitoba ($373) and British Columbia ($362) spent the least.
 
DRUG EXPENDITURES IN CANADA, 2002
 
Drug Expenditures in Canada, 2002, provides a descriptive overview of Canadian drug expenditure trends from 1985 to 1999 and includes forecasts for 2000 and 2001. The report draws upon data compiled from CIHI's National Health Expenditure Database, Canada's most comprehensive source of information on health care financing and spending. Relevant definitions and methodologies are contained within the report (available in electronic format only: ( http://www.cihi.cawww.cihi.ca ).
 
CANADIAN INSTITUTE FOR HEALTH INFORMATION (CIHI)
 
The Canadian Institute for Health Information (CIHI) is an independent, pan-Canadian, not-for-profit organization working to improve the health of Canadians and the health care system by providing quality health information. CIHI's mandate, as established by Canada' health ministers, is to coordinate the development and maintenance of a common approach to health information for Canada. To this end, CIHI is responsible for providing accurate and timely information that is needed to establish sound health policies, manage the Canadian health system effectively and create public awareness of factors affecting good health.
 
FIGURES AND TABLES ARE ALSO AVAILABLE FROM CIHI'S WEB SITE: www.cihi.ca
 
© 2002 Canada NewsWire Ltd. All rights reserved. http://www.newswi re.ca/releases/April2002/24/c7699.html



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