Drug spending rose to $27b last year on back of new entries into the market
May 15, 2008OTTAWA - A new report estimates drug spending in Canada reached $27 billion in 2007 - up from $25 billion the year before.
The Canadian Institute for Health Information says drug spending accounted for about 16 per cent of overall health expenditures last year. The institute says while overall health spending grew at an average annual rate of 6.5 per cent from 1985 to 2005, spending on drugs grew at an average annual rate of 9.5 per cent.
Spending on prescription drugs outpaced non-prescription drugs, with the prescribed drugs accounting for $22.5 billion, or 84 per cent of drug spending in 2007.
New Brunswick spent the most per capita on drugs last year, while the Northwest Territories spent the least.
The institute cites increased volume of drug use and the entry of new drugs into the market, which are typically introduced at higher prices, as reasons for the soaring drug costs.
