By: Fred Jankilevich
Lawyer / Consultant – December 12th 2017
Prescription Drug spending is a major component of prescription drug spending in the United States. Prescription drug spending rose 12% in 2015 and another 6% in 2016. The present figure is $450 billion USD / yr. It constitutes approximately 20% of Health Care spending, Medicaid spending and employer insurance benefits. (Sommers & Grubber: 2010-2015)
Based on the evaluated data, retail spending is slower than hospital spending. Its projected that the overall drug spending is going to be in the 6-8% range for 2017 with higher prices as a result of increase spending in drugs in general.
Legislation can also be attributed as a contributing factor for this year’s fluctuation in price. The elimination of drug coupons by brand name companies continues under lobby in Congress as the California bill set the precedent recently for interchangeable generic drugs as a more efficient alternative.
Nevada comes second in terms of legislation reform, as diabetics have reformed pricing information to improve price transparency. New York is third, whereby the drug-pricing scheme allows the referral of high-cost drugs to a board to determine the evaluation of the medication prescribed.
The bills seek to take a distance from state protectionism, increase transparency and lower the price heights incurred when there is a lack thereof.