Download the Atlas
Atlas Fast Facts
Data Source: IMS Health, CIHI, Statistics Canada
Population Studied: All Canadian residents
Population Size: Approx. 32 million
Period: 1998 to 2007
Specific Regions: National and all provinces
Statistical Methods: Index-theoretic
Canadian governments, employers, unions, and patients currently
spend more money on prescription drugs (about $20 billion in 2007) than
is spent on all services provided by physicians in Canada. At the same
time, prescription drug spending per capita varies by over 50% across
provinces.
Surprisingly little information is systematically collected to
determine which drugs account for most of the spending in Canada, what
factors drive interprovincial variations in spending, and whether
population age is an important cause of spending variations across
provinces and trends over time.
The 2nd edition of The Canadian Rx Atlas significantly enhances our
understanding of medicine use by providing the first-ever portrait of
age-specific patterns of prescription drug use and costs across
provinces. It breaks down nearly $20 billion in prescription drug
spending (private and public) and provides a comprehensive portrait of
the factors that drive trends over time and variations across
provinces.
Key Findings
Total spending
- In 2007, Canadians spent $578 per capita on retail purchases of prescription drugs, approximately $19 billion in total
- Per capita spending on prescription drugs varied across provinces from $432 in British Columbia to $681 in Quebec
- Twenty-five percent of Canadian spending on prescriptions in 2007 was for cardiovascular drugs
Spending by population age
- On average, spending on prescriptions for Canadians age 65 and
older was more than twice that of Canadians aged 45–64 and over six
times that of Canadians aged 20–44 - The large cohort of persons aged 45–64 (including the “baby
boomers”) accounted for 36% of all Canadian retail spending on
prescription drugs in 2007
Sources of interprovincial variation
- Adjusting for population age explained some, but far from all, of
the interprovincial variation in per capita prescription drug spending
in 2007 - Age-standardized spending per capita varied by over 55% across provinces, from $418 in British Columbia to $655 in Quebec
- Most interprovincial variations in age-standardized prescription
drug spending per capita stemmed from variations in the volume of drugs
purchased
Overall cost impact of variations
- If all cost-drivers in Quebec were the same as the national average
on an age-standardized basis, total spending on prescription drugs in
that province would be $595 million lower than was actually the case in
2007 - If all cost-drivers in British Columbia were the same as the
national average on an age-standardized basis, total spending on
prescription drugs in that province would be $701 million higher than
was the case in 2007
Potential explanations for variations
- Differences in the number of drugs covered by provincial drug plans
do not appear to explain interprovincial variations in prescription
drug spending - Population characteristics such as socioeconomics, health status,
and health system do not point to clear explanations of interprovincial
variations in age-standardized spending
Trends over time
- Retail spending on prescription drugs per Canadian nearly doubled
between 1998 and 2007, even after adjusting for the effects of general
inflation on the value of a dollar - Spending grew most rapidly in Manitoba, which began 29% below the
national average in 1998. Quebec had the second fastest growth rate,
but began with spending 7% above the national average in 1998 - Population aging had modest effects on growth in retail spending on prescription drugs in all provinces between 1998 and 2007
- Increased volume of prescription drugs purchased and increased use
of more costly therapeutic choices drove most of the spending growth
observed between 1998 and 2007
Download the Atlas
Atlas Fast Facts
Data Source: IMS Health, CIHI, Statistics Canada
Population Studied: All Canadian residents
Population Size: Approx. 32 million
Period: 1998 to 2007
Specific Regions: National and all provinces
Statistical Methods: Index-theoretic
Canadian governments, employers, unions, and patients currently
spend more money on prescription drugs (about $20 billion in 2007) than
is spent on all services provided by physicians in Canada. At the same
time, prescription drug spending per capita varies by over 50% across
provinces.
Surprisingly little information is systematically collected to
determine which drugs account for most of the spending in Canada, what
factors drive interprovincial variations in spending, and whether
population age is an important cause of spending variations across
provinces and trends over time.
The 2nd edition of The Canadian Rx Atlas significantly enhances our
understanding of medicine use by providing the first-ever portrait of
age-specific patterns of prescription drug use and costs across
provinces. It breaks down nearly $20 billion in prescription drug
spending (private and public) and provides a comprehensive portrait of
the factors that drive trends over time and variations across
provinces.
Key Findings
Total spending
Spending by population age
older was more than twice that of Canadians aged 45–64 and over six
times that of Canadians aged 20–44
boomers”) accounted for 36% of all Canadian retail spending on
prescription drugs in 2007
Sources of interprovincial variation
the interprovincial variation in per capita prescription drug spending
in 2007
drug spending per capita stemmed from variations in the volume of drugs
purchased
Overall cost impact of variations
on an age-standardized basis, total spending on prescription drugs in
that province would be $595 million lower than was actually the case in
2007
national average on an age-standardized basis, total spending on
prescription drugs in that province would be $701 million higher than
was the case in 2007
Potential explanations for variations
do not appear to explain interprovincial variations in prescription
drug spending
and health system do not point to clear explanations of interprovincial
variations in age-standardized spending
Trends over time
between 1998 and 2007, even after adjusting for the effects of general
inflation on the value of a dollar
national average in 1998. Quebec had the second fastest growth rate,
but began with spending 7% above the national average in 1998
of more costly therapeutic choices drove most of the spending growth
observed between 1998 and 2007