Recent survey by Canadian Institute for Health Information revealed that amount spent on medication is touching skies. Data revealed that amount spent on drugs has reached $29.8 billion, or $897 per person in 2008. Survey report also showed that drug spending last year accounted for 17.4 per cent of total health spending as compared to 9.5 percent since 1985.

CIHI spokesman Michael Hunt said: "Over the last 20 years, drugs have consistently remained one of the major cost drivers in health care. Spending on pharmaceuticals has more than doubled over the past 10 years, outpacing growth in health spending by hospitals, physicians and other health professionals."

The CIHI study estimated that prescription medications accounted for 84 per cent of total drug expenditures last year. Report revealed that private sector prescribed drug expenditures reached $12.6 billion in 2007, and is forecast to have reached $14.0 billion in 2008.

Hunt added that the economic downturn is resulting in many Canadians losing their jobs. Since many Canadians have private health insurance through their employment it may also mean a loss of private health insurance. In light of this situation, it will be important to document what the impact will be on both the public sector as well as out-of-pocket drug spending over the next few years.