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Health Tracking

TRENDS

The Impact Of Pipeline Drugs On Drug Spending Growth

Among all components of escalating health care expenditures, spending on prescription drugs is among those growing the fastest. The drug spending growth rate in 1995–1999 was more than twice that of overall health care spending. During that five-year period the annual growth in drug spending increased 10–17 percent, while annual national health expenditures increased 4–6 percent.¹ Most of the prevailing literature has focused on price increases as a major component of drug spending increases. Clearly, as prices increase each year, drug spending surges upward correspondingly. However, two other components that greatly affect drug spending are product shift and utilization. Product . . . [Full Text of this Article]

Components Of Drug Spending Increases

 

Historical Contributions Of Price, Product, And Utilization

 

Implications For Future Spending Trends

 

Discussion And Policy Implications

 

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