IDEAS home Printed from https://ideas.repec.org/a/cpp/issued/v31y2005i4p341-358.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.

Suggested Citation

  • Paul V. Grootendorst & Michael R. Veall, 2005. "National Catastrophic Drug Insurance Revisited: Who Would Benefit from Senator Kirby's Recommendations?," Canadian Public Policy, University of Toronto Press, vol. 31(4), pages 341-358, December.
  • Handle: RePEc:cpp:issued:v:31:y:2005:i:4:p:341-358
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/3552355
    Download Restriction: only available to JSTOR subscribers

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    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.
    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.
    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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpp:issued:v:31:y:2005:i:4:p:341-358. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler). General contact details of provider: http://economics.ca/cpp/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.