The effects of drug subsidies on out-of-pocket prescription drug expenditures by seniors: regional evidence from Canada.
Between 1970 and 1986, all Canadian provinces introduced some version of a prescription drug subsidy for those aged 65 years or over and since 1986, all the provinces have increased copayments or deductibles to some degree. Employing a first-order approximation to the welfare gains from a subsidy, we find evidence that these subsidies have been less redistributive than an absolute per household cash transfer but slightly more redistributive than a transfer that would increase each household's income by the same percentage. Such evidence may have relevance for predicting the redistributive effects of a potential national prescription drug plan for seniors in the US.
D000368:Aged; D002170:Canada; D017047:Cost Sharing; D003430:Cross-Sectional Studies; D003669:Deductibles and Coinsurance; D016527:Drug Costs; D011307:Drug Prescriptions / Q000191:economics* / Q000706:statistics & numerical data; D005191:Family Characteristics; D005260:Female; D005382:Financing, Personal / Q000706:statistics & numerical data* / Q000639:trends; D005102:Health Expenditures / Q000706:statistics & numerical data* / Q000639:trends; D006302:Health Services Research; D006299:Health Services for the Aged / Q000191:economics*; D006801:Humans; D007182:Income / Q000145:classification; D007356:Insurance, Pharmaceutical Services / Q000191:economics* / Q000706:statistics & numerical data; D008297:Male; D017059:Models, Econometric; D009313:National Health Programs / Q000191:economics* / Q000706:statistics & numerical data; D011306:Prescription Fees