Summary of pharmaceutical coverage and general approach to drug price regulation in study countries
| Country | Population, thousands | % of population ≥ 65 yr | GDP per capita, Can$ PPP | Drug expenditure per capita, $* | Dominant source of prescription drug financing (%) | General approach to controlling brand-name drug prices | General approach to controlling generic drug prices |
|---|---|---|---|---|---|---|---|
| Australia | 23 778 | 15 | 58 880 | 535 | Public (71) | Cost-effectiveness considerations for national formulary | Statutory price disclosure and reductions |
| Canada | 35 852 | 16.1 | 55 992 | 824 | Public (39) | Mix of statutory regulation and voluntary price negotiations by some payers | Statutory reductions relative to brand-name drug price |
| France | 66 415 | 18.4 | 49 450 | 679† | Social insurance (70†) | Statutory regulation based on internal and external reference pricing | Statutory reductions relative to brand-name drug price |
| Germany | 81 198 | 21 | 58 586 | 815 | Social insurance (88) | Mix of statutory regulation and voluntary price negotiations | Internal reference-based reimbursement pricing |
| Netherlands | 16 901 | 17.8 | 61 195 | 494† | Social insurance (80†) | Mix of statutory regulation and voluntary price negotiations | Mix of statutory regulation and preferred provider contracts with insurers |
| New Zealand | 4596 | 14.7 | 47 047 | 365‡ | Public (74) | Negotiated supply contracts for national formulary | Competitive tendering of national supply contracts |
| Norway | 5167 | 16.1 | 81 497 | 522 | Public (57) | Mix of statutory regulation and voluntary price negotiations | Statutory reductions relative to brand-name drug price |
| Sweden | 9747 | 19.6 | 58 221 | 407 | Public (72) | Cost-effectiveness considerations for national formulary | Statutory reductions relative to brand-name drug price |
| Switzerland | 8238 | 17.8 | 74 112 | 694 | Social insurance (84) | Statutory regulation based on internal and external reference pricing | Statutory reductions relative to brand-name drug price |
| United Kingdom | 64 875 | 17.7 | 50 601 | 598† | Public (66†) | Mix of statutory profit regulation and negotiated patient access schemes | Statutory price disclosure and reductions |
Note: GDP = gross domestic product, PPP = purchasing power parity.
↵* 2015 or closest year.
↵† Select figures are for total pharmaceutical expenditures, including expenditures on nonprescription medicines.
↵‡ Latest figure (2007) for New Zealand projected to 2015 based on average growth rates in other countries.
Source: Organisation for Economic Co-operation and Development Health Data 2016.1