Non-Insured Health Benefits Program - 2004-2005 Annual Report

5 Expenditure Analysis By Benefit Category

Information in Section 5 provides a breakdown of expenditures by benefit category and region in 2004/05. Comparisons are made to expenditures in 2003/04.

Overall expenditures increased in 2004/05 by 4.2% from the previous year.

Pharmacy expenditures increased to $343.9 million in 2004/05 from $327.0 million in 2003/04, an increase of 5.2%. The highest increase in pharmacy expenditures was in the Nunavut at 14.1%, followed by the Manitoba Region at 11.3%. The Quebec Region, Yukon, Atlantic, Saskatchewan, Ontario and N.W.T. also registered increases in pharmacy expenditures at a rate of 9.2%, 8.2%, 7.8%, 7.5%, 7.2% and 5.4% respectively. Both the Alberta and Pacific Regions increased by 5.7%.

Expenditures for medical transportation were $211.5 million, registering a small increase of 2.8% in 2004/05. The Nunavut had the highest growth rate at 12.6% followed by the Yukon at 10.9%. The N.W.T., Pacific, Manitoba, Saskatchewan, Alberta and Quebec Regions also registered increases in transportation costs at a rate of 8.3%, 5.7%, 4.4%, 3.5%, 2.3% and 1.8% respectively. Two regions showed decreases: Atlantic (-5.8%) and Ontario (-3.7%).

Dental expenditures increased by 6.3% to $143.0 million in 2004/05. The Nunavut had the largest increase at 23.6%, followed by Pacific at 11.0%. The Yukon was the only region to show a decrease of 10.0%.

Overall, total expenditures in vision care increased slightly by 0.9% in 2004/05. The Yukon led all regions with an increase of 114.9%, followed by the Quebec Region at 22.9%, the Ontario Region at 4.5% and the Alberta Region at 3.2%. Nunavut recorded a substantial decrease of 35.5%, while Manitoba had a decrease of 7.1%.

Other health care expenditures increased by 2.1% in 2004/05. The costs in this benefit area rose significantly by 58.3% in the Yukon, followed by 14.7% in the Atlantic Region and 7.5% in the Alberta Region. Three regions recorded decreases: Pacific (-4.4%), Quebec (-4.0%) and Saskatchewan (-3.2%).

Premium expenditures decreased by 2.7% in 2004/05.

Figure 5.1
NIHB Expenditures by Benefit ($ 000)
2003/04 and 2004/05

All benefit areas, with the exception of premiums, registered an increase in expenditures in 2004/05 over 2003/04.

There were cost increases in dental (6.3%), pharmacy (5.2%), transportation (2.8%), other health care (2.1%) and vision care (0.9%).

By comparison, premiums decreased modestly (-2.7%).

Source: FIRMS adapted by Program Analysis Division

Figure 5.2
NIHB Expenditures by Benefit ($ Million)
2004/05

Of the total Non-Insured Health Benefits (NIHB) expenditures in 2004/05 ($767.7 million), pharmacy costs ($343.9 million) represent the largest proportion at 44.8%, followed by transportation costs ($211.5 million) at 27.6% and dental costs ($143.0 million) at 18.6%.

Source: FIRMS adapted by Program Analysis Division

Figure 5.3
NIHB Expenditures by Benefit and Region ($ 000)
2004/05

The Ontario Region accounts for the highest proportion of total expenditures at $140.3 million, 18.3% of the national total, followed by the Manitoba Region at $137.0 million (17.8%) and the Alberta Region at $118.4 million (15.4%).

By contrast, the lowest expenditures are in the Yukon at $7 million (0.9%) of the national total, followed by the Northwest Territories at $20.9 million (2.7%).

Headquarters expenditures represent costs related to automated claims payments.

Source: FIRMS adapted by Program Analysis Division

Figure 5.4
Proportion of NIHB Regional Expenditures by Benefit
2004/05

Just over one-quarter (26.4%) of the total transportation expenditures were spent in the Manitoba Region.

The Ontario Region accounts for 20.7% of total dental expenditures and 19.6% of total pharmacy costs in 2004/05.

The Manitoba Region (33.6%) and the Alberta Region (24.1%) account for over one-half of the total other health care expenditures in 2004/05.

Premium costs are paid only in the Pacific (55.5%) and the Alberta (44.5%) regions.

The proportion of vision care costs ranges from a high of 22.0% in the Ontario Region to 1.9% in the Yukon.

Source: FIRMS adapted by Program Analysis Division

Figure 5.5
Proportion of NIHB Benefit Expenditures by Region
2004/05

At the national level over two-thirds of total expenditures occur in two benefit areas: pharmacy (44.8%) and medical transportation (27.6%). Dental expenditures account for almost one-fifth (18.6%) of total costs in 2004/05.

Nunavut used 49.5% of its total expenditures in medical transportation compared to 16.6% in the Pacific Region. The Atlantic Region used 57.7% of its total expenditures in pharmacy compared to 16.8% in Nunavut. Nunavut used 30.3% of its total expenditures in dental care compared to 13.7% in the Manitoba Region.

Pharmacy costs represented the highest percentage of total expenditures in all regions except Nunavut and the Manitoba Region where medical transportation had the largest proportion.

Source: FIRMS adapted by Program Analysis Division