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Overview of Pharmaceutical Spending and Insurance in Canada

The Canadian pharmaceutical market ranks among the top 10 globally, with the second-highest per capita spending. Insurance coverage varies across provinces and territories, encompassing both public and private sectors. Prescription drugs constitute approximately 85% of total spending, which reached C$32 billion in 2011, reflecting a growth rate of 4% from the previous year. Notably, the trend shows disparities in per capita spending among provinces, emphasizing the variations in financing and growth rates from 2000 to 2010.

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Overview of Pharmaceutical Spending and Insurance in Canada

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  1. PharmaceuticalOverview 20

  2. PharmaceuticalOverview •Pharmaceuticalsarecoveredthroughpublicorprivateinsurance •Withinahospitalsettingdrugsadministeredarecoveredthrough publicinsurance •Provincesandterritoriesofferpharmaceuticalinsuranceplans •Plansdifferineligibility,premiums,coverageandformulary design •Canadatop-10pharmaceuticalmarketintheworld–percapita spending2ndhighestintheworld •Stronggrowthinpercapitapharmaceuticalspendingsince 1990s •Between2000-2010percapitaspendingalmostdoubledfrom USD400.7toUSD740.7(PPP) 21

  3. PharmaceuticalSnapshot • • • • • Totalspendingonpharmaceuticalsin2011C$32billion(CIHI) Growthof4%2010-2011 LowergrowththaninthepastbutstillclosetoTEHAAGR Prescriptiondrugsaccountforcloseto85%oftotalspending Relativelyevensplitbetweenpublicandprivatefinancingof prescriptiondrugs:45%vs.55% •Strongergrowthratesinprivatefinancing(6.8%)vs.public financing(2.2%) •Largevariationsinpercapitaspendingfromprovinceto province:C$576inBritishColumbiaandC$710inManitobavs. C$937inNewBrunswickandC$985inNovaScotia •Largevariationsinspendinggrowthfromprovincetoprovince: 1.4%inBritishColumbiaand2%inOntariovs.7.4%in Saskatchewanand9.4%inNewfoundlandandLabrador 22

  4. TotalExpenditureonPharmaceuticalsandOtherMedical Non-durables,%TEH,Canada,1960-2010 Source: OECDStat 20 (2012) 18 16 14 12 10 8 6 4 2 0 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 23

  5. TotalExpenditureonPharmaceuticals,%ofTEH,1990-2009, CanadaandSelectOECDCountries 25 20 15 10 Canada UnitedStates Germany Japan France 5 Source: OECDStat (2012) 0 19901991199219931994199519961997199819992000200120022003200420052006200720082009 24

  6. TotalPerCapitaSpending,PharmaceuticalsandOther MedicalNon-durables,US$PPP,Canada,1980-2010 800 700 600 500 400 300 Source: OECDStat (2012) 200 100 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 25

  7. TotalPerCapitaSpending,PharmaceuticalsandOther Medical non-durables, US$ PPP, 2010 or Closest Year, OECD 1000 900 800 700 600 500 400 300 200 100 0 Source: OECDStat (2012) 26

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