Changing medicine trends and its likely

impact on the SA healthcare industry

committed to excellencecommitted to excellence

• Medicine expenditure trend 2005 to 2007• Demographic factors of sample• 2005 to 2007 actual experience

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Contents

Presented by: Madelein Bester

(Benefit Management: Mediscor PBM)

Medicine expenditure trend 2005 to 2007

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Age distribution

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Expenditure trend – 2005 to 2007

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Rands per beneficiary – 2005 to 2007

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Cost trend – 2005 to 2007

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Rands per item – 2005 to 2007

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Single Exit Price % change – Jan 05 to Dec 07

Legislated increase in SEP Legislated increase in SEP (maximum of 5.2% allowed)(maximum of 5.2% allowed)

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Single Exit Price % change – Jan 05 to Dec 07

Decrease of 2.4% Decrease of 2.4% (Jan 05 to Dec 06)(Jan 05 to Dec 06)

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Single Exit Price % change – Jan 05 to Dec 07

Legislated increase in SEP Legislated increase in SEP (maximum of 5.2% allowed)(maximum of 5.2% allowed)

Increase of 3.1% Increase of 3.1% (Dec 06 to May 07)(Dec 06 to May 07)

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Brands vs. generics – 2005 to 2007

↑↑3% ↑17%3% ↑17%

↓↓26% 26% ↓↓8%8%

↑↑10% ↑28%10% ↑28%

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Utilisation trend – 2005 to 2007

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Utilisation trend for existing medicines

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Summary of expenditure trend

Medicine expenditure:Medicine expenditure:• 2005 – 2006 (5.4%)• 2006 – 2007 (13.3%)

• Driven by:Driven by:• Item cost

• 2005 – 2006 (0.4%) • 2006 – 2007 (10.2%)

• Utilisation• 2005 – 2006 (5.0%) 2005 – 2006 (5.0%) - Intensity- Intensity• 2006 – 2007 (2.8%) 2006 – 2007 (2.8%) - Prevalence- Prevalence

www.mediscor.net

For more information please contact Madelein Bester on +27 12 674-8006