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National Catastrophic Drug Insurance Revisited: Who Would Benefit from Senator Kirby's Recommendations?

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Author Info
Paul V. Grootendorst
Michael R. Veall

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Abstract

Senator Kirby recommended that the federal government cover the "catastrophic" portion of drug costs incurred by drug plans that met certain minimum coverage requirements. Under the assumption that implementation of Kirby's proposal would result in every household not already in a qualifying plan being enrolled in such a plan, we estimate the benefits to households of different incomes, ages, and province of residence. We find that average immediate gains would be up to five times higher for households already covered by provincial government drug plans (seniors, low income) than for all other households. Of the $500 million gained by households, only about 8 percent would be contributed by the federal government. Hence, provincial governments with relatively non-comprehensive drug plans might not find the proposed federal assistance sufficiently attractive to upgrade their plans.

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File URL: http://economics.ca/cgi/jab?journal=cpp&view=v31n4/CPPv31n4p341.pdf
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Publisher Info
Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 31 (2005)
Issue (Month): 4 (December)
Pages: 341-358
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Handle: RePEc:cpp:issued:v:31:y:2005:i:4:p:341-358

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Frank T. Denton & Byron G. Spencer, 1999. "Population Aging and Its Economic Costs: A Survey of the Issues and Evidence," Quantitative Studies in Economics and Population Research Reports 340, McMaster University. [Downloadable!]
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  2. Paul Grootendorst & Mitchell Levine, 2002. "Do Drug Plans Matter? Effects of Drug Plan Eligibility on Drug Use Among the Elderly, Social Assistance Recipients and the General Population," Quantitative Studies in Economics and Population Research Reports 372, McMaster University. [Downloadable!]
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  3. Alan, Sule & Crossley, Thomas F. & Grootendorst, Paul & Veall, Michael R., 2002. "The effects of drug subsidies on out-of-pocket prescription drug expenditures by seniors: regional evidence from Canada," Journal of Health Economics, Elsevier, vol. 21(5), pages 805-826, September. [Downloadable!] (restricted)
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