Studying the impoverishing effects of procuring medicines: a national study

Main drivers of diabetes pharmaceuticals expenditures: evidence from OECD countries and Iran

Purpose

This study aimed to identify the impact of prominent drivers on drug expenditure for diabetes.

Method

Following the examination of previous studies, this study identified possible factors contributing to diabetes pharmaceutical expenditures. The explanatory variables for the study were the median population age, access to innovative drugs, GDP per capita, prevalence, price, and consumption of diabetes drugs. Then, to estimate the per capita expenditure among diabetic patients, this study developed the panel data model and two time-series regression models for OECD countries and Iran, respectively.

Results

In the panel data regression model, R2 was 0.43. The influence of the age, prevalence, consumption volume and GDP per capita coefficients were + 1.79, + 0.704, + 3.86057, + 0.00054, respectively. Also, the probability level of all variables was less than 0.05. In Iran's comparative time-series regression model, R2 was 0.9, and the only significant influence coefficient was the age (β=+0.91). In the another model for Iran, R2 was 0.99, the influence coefficient of age was + 0.249, the prevalence was + 0.131, innovation was + 0.029, and the price was + 0.00054; all the probability levels were less than 0.05.

Conclusion

Pharmaceutical per capita expenditure is affected by several factors. These factors are not the same in various counties. Passing a judgment on drug utilization only based on pharmaceutical per capita expenditure cannot be perfect. Also, judging whether the per capita drug expenditure in one country is desirable without attention to the affecting factors and only relying on the value of utilized medicines is defective.

Catastrophic pharmaceutical expenditure in patients with type 2 diabetes in Iran

OBJECTIVES

This study aimed to assess the financial burden of out-of-pocket (OOP) payments to purchase antidiabetic medicines for type 2 patients in Iran.

METHOD

The "budget share" and "capacity to pay" approaches were employed to assess the catastrophic pharmaceutical expenditures of antidiabetic medication therapies. The catastrophic thresholds were adjusted for pharmaceutical sectors. The data was 2019 monthly household expenditures in rural and urban areas, insurance coverages of antidiabetic medicines and patients' out-of-pocket (OOP) payments in 30-day treatment schedules.

RESULTS

The results show that expenditure on diabetes medication therapies in the form of mono-dual therapy and some cases triple oral therapies were not catastrophic even for rural households. Insulin puts patients at risk of catastrophic pharmaceutical expenditures when added to the treatment schedules, and lack of financial protection intensifies it. In general, the poorer households and those resistant to first-line treatments were at increased risk of catastrophic pharmaceutical expenditures. The number of treatments that put patients at risk of catastrophic pharmaceutical expenditure in "budget share" was higher than the "capacity to pay" approach.

CONCLUSIONS

Assessing medication treatment affordability instead of a single medicine assessment is needed. Assessment could be done by utilizing a macro-level data approach and applying adjusted pharmaceutical sector threshold values. Considering the variation between treatment schedules that put patients at risk of catastrophic pharmaceutical expenditures, targeted pharmaceutical policies and reimbursement decisions are recommended to promote Universal Health Coverage (UHC) and to protect vulnerable populations from hardship.

The Impact of Inflation and Its Uncertainty on Pharmaceutical Prices: Evidence from Iran

Pharmaceutical productions are recognized as an essential commodity in the economical literature; therefore, an increase in their prices leads to an increase in the household budget. Currently, about 15-20% of the entire health expenditure in Iran is allocated to the pharmaceutical sector. This study aimed to investigate the effect of inflation and its uncertainty on inflation in pharmaceutical prices in Iran. In this study, the monthly time series of consumer price index from 2001 to 2017 was used to calculate inflation uncertainty based on a generalized autoregressive conditional heteroscedasticity model. Hylleberg-Engle-Granger-Yoo test was performed to determine the stationary of the data. Feasibility tests were also used to explore the application of Autoregressive conditional heteroscedasticity family models to these data. The causal relationship between inflation uncertainty and inflation in the pharmaceutical sector was investigated using the Granger causality test. A causal relationship was found between inflation and inflation uncertainty at the 95% confidence interval for the monthly data during the study. It was revealed that Inflation uncertainty did not affect the inflation in the pharmaceutical prices, but inflation can be a cause of pharmaceutical inflation. Although inflation uncertainty has no association with pharmaceutical inflation, it seems that it could affect pharmaceutical inflation through inflation in other sectors. Therefore, adopting appropriate monetary policies aimed at controlling liquidity and inflation can effectively control pharmaceutical prices.