Prescription Drugs And The Slowdown In Health Care Spending

Several studies have examined the underlying sources for the recent slowdown in health care spending. These analyses have focused largely on the role of the 2007-2009 recession, the increasing prevalence of high deductible health insurance plans, and other structural changes in the payment and delivery of care. However, the studies examining these factors do not account for the full decline in spending, or raise questions about the pattern and timing of the slowdown. Role Of Prescription Drugs In The Health Spending Slowdown Certainly the recession accounted for a component of the post 2007 slowdown in spending. However, the growth in real per capita health care spending is slower post 2010 than it was during the three prior years. Between 2010 and 2013 the real per capita health care spending increased 1.2 percent compared to 1.6 percent over the entire 2007 to 2013 period (Exhibit 1). An important component of the 2010 to 2013 continued slowdown in spending was the negative growth in real per capita spending on prescription drugs (Exhibit 2). Hospital and physician spending both increased faster than the growth in total health care spending. In contrast, the growth in real per capita spending on prescription medications declined by 0.5 percent between 2010 and 2013. Explaining The Drug Spending Decline What accounts for the decline in drug spending during this period? One major explanation is the large number of drug patent expirations that peaked in 2012. In that year alon...
Source: Health Affairs Blog - Category: Health Management Authors: Tags: Costs and Spending Drugs and Medical Technology Featured Quality generic drugs medication adherence Prescription Drugs Source Type: blogs