A Social Insurance Model for Pharmacare: Ontario's Options for a More Sustainable, Cost-Effective Drug Program

28 Pages Posted: 29 Apr 2011

Date Written: April 14, 2011

Abstract

With annual spending of about $4.5 billion dollars in 2010, Canada’s largest drug plan - the Ontario Drug Program (ODB) - will become harder to afford as the babyboomers age and workforce growth slows. A business-as-usual approach to funding the plan, which provides publicly funded drug benefits to every Ontario resident aged 65 an older, presents a bleak prospect and amounts to wilfully passing on an exorbitant bill to future generations. Ontario, like all jurisdictions, faces tough challenges at the intersection of fiscal and health policy. Partial prefunding and benefit-payment reform of the ODB would put a key health program on a stronger and more sustainable footing.

Keywords: The Health Papers, Ontario Drug Program (ODB), Province of Ontario

JEL Classification: I18, H75

Suggested Citation

Busby, Colin and Robson, William B. P., A Social Insurance Model for Pharmacare: Ontario's Options for a More Sustainable, Cost-Effective Drug Program (April 14, 2011). C.D. Howe Institute Commentary, No. 326, April 2011. Available at SSRN: https://ssrn.com/abstract=1825362

Colin Busby (Contact Author)

C.D. Howe Institute ( email )

67 Yonge St., Suite 300
Toronto, Ontario M5E 1J8
Canada

William B. P. Robson

C.D. Howe Institute ( email )

67 Yonge Street
Suite 300
Toronto, Ontario M5E 1J8
Canada
416-865-1904 (Phone)
416-865-1866 (Fax)

HOME PAGE: http://www.cdhowe.org

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