Expensive New Meds, Price Hikes On Old Ones Contribute To Steep Drug Spending Spike
Total spending in 2015 rose to nearly $425 billion, according to the report from the IMS Institute for Healthcare Informatics. It estimates that after rebates and other price breaks, manufacturers received $309.5 billion for U.S. prescription drugs last year, up 8.5 percent from 2014.
The Wall Street Journal:
U.S. Drug Spending Climbs
Total spending on prescription drugs in the U.S. rose 12.2% to nearly $425 billion in 2015, continuing a steep climb fueled by the introduction in recent years of expensive new drugs for cancer and infections, as well as price hikes for older drugs, according to a new report. The spending growth rate decelerated from the 14.2% rise in 2014, partly because of patent expirations for certain drugs, but the growth was still well above the average for the past decade, according to a research arm of IMS Health that produces the annual report on spending. The figures are based on pharmaceutical list prices. ... IMS estimated that after rebates and other price breaks, manufacturers received $309.5 billion for U.S. prescription drugs last year, up 8.5% from 2014. (Loftus, 4/14)
Prescription Drug Spending Hits Record $425 Billion In U.S.
While net growth slowed as pharmaceutical companies offered more rebates and patient assistance programs to help cover the costs, spending will continue to rise at a steady mid-single-digit rate through 2020, when it’s expected to hit $610 million to $640 million, according to a report from the IMS Institute for Healthcare Informatics. (Cortez, 4/14)
The Associated Press:
Report: US Medicine Spending Up 8.5 Percent 2015
The report comes amid growing criticism of unaffordable drug prices from patients, doctors, insurers, Congress and presidential candidates, who have pledged to rein in drug prices. Insurers have been trying to limit prices, demanding bigger discounts to cover many drugs, but have less clout on drugs with little or no competition. Drug spending keeps growing due to factors including rising prices, fewer blockbuster drugs getting new generic competition and a 10 percent jump last year in the number of prescriptions filled, to nearly 4.4 billion. In prior years, total prescriptions dispensed edged up about 2 percent. (Johnson, 4/14)