Rising drug costs force tough choices: CIHI

A report by a Canadian health watchdog group says prescription drug costs have risen more than 500 per cent during the last 20 years, and provincial governments are struggling to cope.

The Canadian Institute for Health Information says Canada spent about $4 billion on drug costs in 1985. That number skyrocketed to $25 billion in 2005.

• OFFICIAL SITE: Canadian Institute of Health Information

CIHI's manager of pharmaceutical programs, Michael Hunt, says drug costs are the fastest growing category of health-care spending in the country, and governments are being forced to choose how much of their budget can be allocated to drugs.

Last year, prescription drug spending made up about 17.5 per cent of total health spending across Canada.

• FROM MAY 10, 2006: Drug spending in Canada climbs to $25 B in 2005

Each province has a different approach to paying for prescriptions. The Manitoba health department funds approximately half of all prescribed drugs, while most of the Atlantic provinces including New Brunswick cover about one-third of all drugs on the public plan.

That means New Brunswickers are left to cover more drug costs than other Canadians, whether out of their own pockets or through private insurance.

Moncton pharmacist Peter Ford says some people on lower incomes are choosing not to fill their prescriptions, or only take them every second or third day.

"The cost of medication in the last 25 years has gone from an average of $8 per prescription, to about $65. So it's a pretty high increase in 25 years," he said.

"I had a patient a couple of years ago who was going through cancer treatment for lymphoma, and he was 62. He was actually considering re-mortgaging his home to pay for the drugs. And that shouldn't happen in this country."

Hunt says governments need to set their own priorities about what they can spend on medicine. "You know the purpose of the report is to really raise the discussion, and we would hope that all stakeholders begin to ask the questions of how much is the right amount to spend on drugs or prescribed drugs within the country?"

Hunt says the tax base, and the amount of money available, often influences how much provincial governments can spend on drug plans.