Canadians spending more on drugs
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* Laura Eggertson

*   © 2005 CMA Media Inc. or its licensors

Canadians spent an estimated $22 billion on prescription and nonprescription drugs in 2004 — the fastest-growing segment of health care spending, according to a new report from the Canadian Institute for Health Information.

![Figure1](http://www.cmaj.ca/https://www.cmaj.ca/content/cmaj/172/10/1279.2/F1.medium.gif)

[Figure1](http://www.cmaj.ca/content/172/10/1279.2/F1)

Figure. 

Drug costs, which rose 9% over 2003, continue to grow faster than hospital or physician spending, states *Drug Expenditure in Canada, 1985–2004*. The figures are extrapolations based on spending in 2002, the last year for which the Institute has data.

Individual Canadians spent an average of $681 on drugs in 2004, an increase of 8% over the previous year, states the report. The highest costs were $718 per person in New Brunswick, compared with a low of $542 per person in British Columbia.

The differences in per capita spending are affected by provincial drug subsidy programs as well as population demographics, the report notes.

“Across the country … public drug coverage for Canadians varies,” Michael Hunt, manager of pharmaceutical programs at the Institute, said. “To better understand what is driving the variation in drug expenditure, CIHI is building a system to collect prescribed drug claim information. This information will assist in understanding the factors that influence drug use and, ultimately, drug expenditure.”

Prescription drugs are taking an increasingly large bite out of both the overall increase and the rising costs. They account for 83% of total drug spending in Canada and a 10% price growth over the previous year. Spending on nonprescription drugs rose only 3% year-over-year.

The increase in spending on drugs is related to the entry of new drugs into the market at higher prices and the volume of drug use, the report states.