Pharmaguy's Insights Into Drug Industry News
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Pharmaguy's Insights Into Drug Industry News
Pharmaguy curates and provides insights into selected drug industry news and issues.
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#Pharma Can Thank Obamacare in Part for Increased Sales of Rx Drugs

#Pharma Can Thank Obamacare in Part for Increased Sales of Rx Drugs | Pharmaguy's Insights Into Drug Industry News | Scoop.it

National health spending in American grew by 5.3% in 2014, hitting the $3 trillion mark. This represented an up-tick nearly twice the growth rate of 2.9% in 2013, the slowest rate of growth in 55 years, according to the latest analysis of the U.S. health economy published by Health Affairs. 


In 2014, the fastest-growing line item in the National Health Expenditures was prescription drug spending, which grew hockey-stick-like in 2014 shown in the second chart. At 12.2%, Rx drug spending increased over 15 times the rate of annual inflation for 2014, which was 0.8%.


The concluding paragraph of the Health Affairs article reads: “The expansion of insurance coverage, particularly through Medicaid and private health insurance, and rapid growth in retail prescription drug spending fueled a 5.3 percent increase in total national health care expenditures in 2014. This increase compares to historically low health spending growth from 2009 to 2013, when growth averaged only 3.7 percent. Health expenditures grew faster than the overall economy in 2014, as the GDP increased 4.1 percent. As a result, the health spending share of GDP increased from 17.3 percent in 2013 to 17.5 percent in 2014. The return to faster growth and an increased share of GDP in 2014 was largely influenced by the coverage expansions of the Affordable Care Act. But how the health sector responds to the evolving access and incentive landscape, as well as underlying economic conditions, will determine the future trajectory of health spending growth.”

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3 Michael Allen's curator insight, February 26, 2016 11:04 AM

Inflation

The national health spending has greatly increased due to more people being pescribed drugs and increase of the price. Prescription drug spending was the fastest growing in 2014, in had incresed over 15 times the rate of annual inflation in 2014 which was 0.8% andnow its 12.2%.

I didnt realize that we spend so much money on drugs that people are prescribed for. With the rapidly growing economy its kind of obvious that they would increse the price of drugs because more people want them.

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Prescription Spending - Especially for Specialty Drugs - Soars

Prescription Spending - Especially for Specialty Drugs - Soars | Pharmaguy's Insights Into Drug Industry News | Scoop.it

More than $374 billion was spent on prescription drugs in the United States in 2014, according to a report from the IMS Institute of Health. That was a 13.1% jump from 2013, and the highest growth rate in more than a decade, says ExpressScripts.


Specialty drugs have been the biggest revenue generators for pharma companies. According to ExpressScripts, spending on specialty drugs grew more than 30% in 2014.

And that high growth rate is expected to continue through 2017.


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