Prescription drug costs are not the cause of the national health spending crunch, according to a new Fraser Institute report.
The Misguided War Against Medicines 2011 blames public insurance programs for Canada’s ballooning healthcare budget.
“In 2010, medical goods and services other than drugs consumed a staggering 91% of total government health spending,” said report co-author Mark Rovere, Fraser Institute associate director of health policy research.
“To single out prescription drugs as the root of Canada’s health spending problem is just plain wrong.”
The report looked at government spending on prescription drugs, patented prescription drugs, health professionals, administration, research, hospitals and institutions and public health.
It found 91% of total government spending on health was in areas other than drugs.
“This tells us that, even if governments spent nothing on drugs, the cost of all other medical goods and services would still be unsustainable,” Rovere said.
The study further shows that, between 2001 and 2010, average annual government spending on hospitals and institutions grew 6.5% annually. Spending on health professionals increased 6.8% and 7.6% on administration and public health.
Rovere added that limiting Canadians access to new medicines and technologies is not the answer to decreasing government expenditure.
“Canadians suffer when governments attempt to control health care costs by restricting access to new medicines and technologies.”
Jen O’Rourke
Twitter:jroar