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Senator Kirby recommended that the federal government cover the "catastrophic" portion of drug costs incurred by drug plans that met certain minimum coverage requirements. Under the assumption that implementation of Kirby's proposal would result in every household not already in a qualifying plan being enrolled in such a plan, we estimate the benefits to households of different incomes, ages, and province of residence. We find that average immediate gains would be up to five times higher for households already covered by provincial government drug plans (seniors, low income) than for all other households. Of the $500 million gained by households, only about 8 percent would be contributed by the federal government. Hence, provincial governments with relatively non-comprehensive drug plans might not find the proposed federal assistance sufficiently attractive to upgrade their plans.

National Catastrophic Drug Insurance Revisited: Who Would Benefit from Senator Kirby's Recommendations?