Quantifying components of drug expenditure inflation: the British Columbia seniors' drug benefit plan


Related Publications

Smolina K, Weymann D, Morgan S, Ross C, Carleton B. Association between regulatory advisories and codeine prescribing to postpartum women. Journal of the American Medical Association. 2015;313(18):1861-2.
Suter E, Misfeldt R, Mallinson S, Wilhelm A, Boakye O, Marchildon G, et al. Comparative Review of the Policy Landscape of Team-based Primary Health Care Service Delivery in Western Canada. Alberta Health Services; 2014.
Laberge M, Pang J, Walker K, Wong ST, Hogg W, Wodchis WP. QUALICOPC (Quality and Costs of Primary Care) Canada: A focus on the aspects of primary care most highly rated by current patients of primary care practices. Ottawa, ON: Canadian Foundation for Healthcare Improvement; 2014.
McGregor MJ, Abu-Laban RB, Ronald L, McGrail KM, Andrusiek D, Baumbusch J, et al. Nursing Home Characteristics Associated with Resident Transfers to Emergency Department. Canadian Journal on Aging. 2012;33(1):38-48.

Publication Topics

Quantifying components of drug expenditure inflation: the British Columbia seniors' drug benefit plan

Publication TypeJournal Article
Year of Publication2002
AuthorsMorgan SG
JournalHealth services researchHealth Serv.Res.
Pages1243 - 1266
Date Published2002
KeywordsAged, British Columbia, Data Collection, Drug Costs/statistics & numerical data/trends, Drug Prescriptions/economics, Drugs, Generic/economics, Health Expenditures/statistics & numerical data/trends, Health Services Research, Humans, Insurance, Pharmaceutical Services/economics, Medical Assistance/economics, Models, Statistical, Therapeutic Equivalency
AbstractOBJECTIVE: To quantify the relative and absolute importance of different factors contributing to increases in per capita prescription drug costs for a population of Canadian seniors. DATA SOURCES/STUDY SETTING: Data consist of every prescription claim from 1985 to 1999 for the British Columbia Pharmacare Plan A, a tax-financed public drug plan covering all community-dwelling British Columbians aged 65 and older. STUDY DESIGN: Changes in per capita prescription drug expenditures are attributed to changes to four components of expenditure inflation: (1) the pattern of exposure to drugs across therapeutic categories; (2) the mix of drugs used within therapeutic categories; (3) the rate of generic drug product selection; and (4) the prices of unchanged products. DATA COLLECTION/EXTRACTION METHODS: Data were extracted from administrative claims files housed at the UBC Centre for Health Services and Policy Research. PRINCIPAL FINDINGS: Changes in drug prices, the pattern of exposure to drugs across therapeutic categories, and the mix of drugs used within therapeutic categories all caused spending per capita to increase. Incentives for generic substitution and therapeutic reference pricing policies temporarily slowed the cost-increasing influence of changes in product selection by encouraging the use of generic drug products and/or cost-effective brand-name products within therapeutic categories. CONCLUSIONS: The results suggest that drug plans (and patients) would benefit from more concerted efforts to evaluate the relative cost-effectiveness of competing products within therapeutic categories of drugs.
Citation Key444