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

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  • Paul V. Grootendorst
  • Michael R. Veall

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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Bibliographic 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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  1. Thomas F. Crossley & Paul Grootendorst & Sule Korkmaz & Michael R. Veall, 2000. "The Effects of Drug Subsidies on Out-of Pocket Prescription Drug Expenditures by Seniors: Regional Evidence from Canada," Quantitative Studies in Economics and Population Research Reports 350, McMaster University.
  2. Paul V. 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," Social and Economic Dimensions of an Aging Population Research Papers 73, McMaster University.
  3. P Grootendorst, 1999. "Beneficiary Cost Sharing Under Canadian Provincial Prescription Drug Benefit Programs: History and Assessment," Centre for Health Economics and Policy Analysis Working Paper Series 1999-10, Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada.
  4. Frank T. Denton & Byron G. Spencer, 1999. "Population Aging and Its Economic Costs: A Survey of the Issues and Evidence," Social and Economic Dimensions of an Aging Population Research Papers 1, McMaster University.
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