Drug spending in Canada climbs to $25 B in 2005

Total spending on drugs in Canada reached an estimated $24.8 billion in 2005, up 11 per cent from the previous year, a report shows.

The Canadian Institute for Health Information released its annual report, Drug Expenditure in Canada, 1985 to 2005, on Wednesday.

The estimated total cost of drugs per person including public and privatedrug-subsidy programs and out-of-pocket paymentswas $770, an increase of 10.2 per cent from 2004.

Public programs in the provincesspent an average of $295 per person on prescription drugs.

Prince Edward Island paid the least in the country, at $194, while Quebec paid the most, at $341.

The amountshelled out privately forprescription drugsalso varied between provinces, ranging from $280 per person in Manitoba to $475 in New Brunswick.

The average spent out of pocket and byprivate insurance planswas $346.

Michael Hunt, manager of pharmaceutical programs at the Canadian Institute for Health Information, said several factors account for different costs among public drug-subsidy programs.

They includevariations in:

• The age and sex distribution.
• The health needs of targeted populations.
• The way health care is delivered.

The institute's report also found that drugs continue to be the fastest-growing category of health-care costs. Prescription drugs account for most drug spending.

It is estimated that drug spending will reach 17.5 per cent of total health expenditure in 2005, almost double the 9.5 per cent reported in 1985, the report said.

Since 1997, hospitals have accounted for the largest share of health spending, with drugs ranked second.

Canada ranks third-lowest out of 13 countries in terms of its public financing of total drug costs, according to statistics collected by the Organization for Economic Co-operation and Development.