committed to excellence Changing medicine trends and its likely impact on the SA healthcare industry

Contents Medicine expenditure trend 2005 to 2007 Demographic factors of sample 2005 to 2007 actual experience Presented by: Madelein Bester (Benefit Management: Mediscor PBM) 2

Medicine expenditure trend 2005 to 2007

Age distribution

Expenditure trend – 2005 to 2007

Rands per beneficiary – 2005 to 2007

Cost trend – 2005 to 2007

Rands per item – 2005 to 2007

Legislated increase in SEP (maximum of 5.2% allowed) Single Exit Price % change – Jan 05 to Dec 07 Legislated increase in SEP (maximum of 5.2% allowed) 9

Single Exit Price % change – Jan 05 to Dec 07 Decrease of 2.4% (Jan 05 to Dec 06) 10

Legislated increase in SEP (maximum of 5.2% allowed) Single Exit Price % change – Jan 05 to Dec 07 Legislated increase in SEP (maximum of 5.2% allowed) Increase of 3.1% (Dec 06 to May 07) 11

Brands vs. generics – 2005 to 2007 ↑3% ↑17% ↓26% ↓8% ↑10% ↑28% 12

Utilisation trend – 2005 to 2007

Utilisation trend for existing medicines

Summary of expenditure trend Medicine expenditure:  2005 – 2006 (5.4%)  2006 – 2007 (13.3%) Driven by: Item cost  2005 – 2006 (0.4%)  2006 – 2007 (10.2%) Utilisation  2005 – 2006 (5.0%) - Intensity  2006 – 2007 (2.8%) - Prevalence

For more information please contact Madelein Bester on +27 12 674-8006 www.mediscor.net For more information please contact Madelein Bester on +27 12 674-8006