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

2. 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

3. Medicine expenditure trend 2005 to 2007

4. Age distribution

5. Expenditure trend – 2005 to 2007

6. Rands per beneficiary – 2005 to 2007

7. Cost trend – 2005 to 2007

8. Rands per item – 2005 to 2007

9. 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

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

11. 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

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

13. Utilisation trend – 2005 to 2007

14. Utilisation trend for existing medicines

15. 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

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