Distributional Effects of 'General Population' Prescription Drug Programs in Canada

Canadian household prescription drug expenditures are studied using the Statistics Canada Family Expenditure Survey masterfiles for periods that include the introduction of provincial 'general population' prescription drug programs. Budget shares for non-senior households are examined over time using non-parametric regression, parametric 'difference-in-difference' techniques, and quantile regression methods. The evidence suggests that while program effects are muted when there are high deductibles, a non-senior prescription drug subsidy is more redistributive than an equal-cost proportional income transfer, in part because of differential private health insurance coverage by income. This is in contrast to previous evidence on Canadian senior prescription drug subsidies