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Pharmaceutical policies in Canada. Issues and challenges.

D E Angus¹, H M Karpetz

¹MHA Programme, Faculty of Administration, University of Ottawa, Ontario, Canada.

Pharmacoeconomics

|December 8, 1997

Summary

Canadian pharmaceutical spending is rising due to increased drug use and prices. Effective cost control requires focusing policies on drug manufacturers and healthcare providers, not just consumers.

Area of Science:

Health Policy
Pharmaceutical Economics
Healthcare Management

Background:

Pharmaceuticals are a significant and growing component of Canadian healthcare expenditures.
Canada has faced challenges in controlling healthcare and pharmaceutical cost increases compared to other OECD countries.
Rising drug costs are linked to increased per capita drug use, a shift towards more expensive medications, and price inflation.

Purpose of the Study:

To analyze pharmaceutical expenditures and utilization in Canada.
To review existing pharmaceutical cost control strategies.
To discuss future challenges and policy considerations for pharmaceuticals in Canada.

Main Methods:

Analysis of pharmaceutical expenditure and utilization data in Canada.

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Review of cost control strategies implemented for pharmaceuticals.

Discussion of policy implications and future issues.

Main Results:

Canada's pharmaceutical cost increases have outpaced those in many OECD nations.
Key drivers of escalating drug costs include higher per capita consumption, increased use of high-cost drugs, and rising prices.
Current policies have not been sufficiently effective in controlling pharmaceutical spending.

Conclusions:

Future pharmaceutical policies in Canada must address fundamental issues related to drug pricing and utilization.
Policy interventions should primarily target pharmaceutical manufacturers and healthcare providers.
A coordinated and internally consistent policy framework is necessary for effective cost management.