Total expenditures now total $22.3 billion.
The key cost driver for prescription drugs
is the introduction of new, expensive patented
medicines, which may not be any
more effective, or safer, than drugs already
on the market.
According to the federal government’s
Patented Medicines Prices Review Board
(PMPRB), of the 192 new active substances
introduced in Canada between 2001
and 2009, only 19 were categorized
as a “breakthrough or substantial improvement ” over existing drug products.
The vast majority of these new active
substances (173 of 192) “provide moderate,
little or no therapeutic advantage
over comparable medicines.”
Physician and author Dr. Michael Rachlis
also questions the value of the increased
spending on the newest medicines in
his book Prescription for Excellence. “Despite the prevailing wisdom that highquality
therapeutics cost big bucks, we’re
overpaying for what we’re getting. Costs
are spiraling upward because doctors
tend to over prescribe drugs, particularly
to the elderly, and they tend to prescribe
new, expensive drugs when a cheaper
alternative is available.”
As the chart illustrates, according to
2010 IMS Health data, the average cost of
brand-name prescriptions now is $72.12, while the average cost of a generic
prescription is $26.77. The average price of
a brand-name prescription increased by
37% over the last 10 years. In comparison,
the average cost of a generic prescription
grew by 29%. |
