The IMS Institute for Healthcare Informatics released its study "Medicines Use and Spending in the U.S.: A Review of 2015 and Outlook to 2020" today.
The study reveals that spending on medicines rose 8.5 percent between 2014 and 2015, to $310 billion. When spending is not adjusted for rebates and price concessions, the total spending reached $425 billion in 2015.
“The challenge of balancing access and the cost of care in an era of innovative but more expensive treatments continues as a theme across our health care system,” IMS Health SVP and IMS Institute executive director Murray Aitken said. “The level of price concessions achieved in 2015 points to a shift in market dynamics as manufacturers accept lower price increases on existing products. At the same time, spending on new brands continued at near-historic levels.”
The report also revealed that medications for treating hepatitis, autoimmune diseases and cancer resulted in a 21.4 percent spending increase in specialty medicines. In addition, 43 New Active Substances (NASs) and 30 new brands were launched in 2015. While prescriptions rose 1 percent, patient costs rose due to pharmacy deductibles and rises in copayments and coinsurance. Manufacturers have responded by providing coupons or vouchers to assist patients in reducing their prescription costs.
“This report highlights how tools used by pharmacy benefit managers restrain costs for commercial and government payers by increasing competition among drugmakers," Pharmaceutical Care Management Association President and CEO Mark Merritt said. "This competitive model should be used to root out wasteful spending in unmanaged programs where PBM tools are not widely employed.”
The growth forecast to 2020 shows an expected increase of 4 percent to 7 percent annually. The increases in spending on new medications will be offset by new generics appearing on the market as brands lose market exclusivity. Costs will also be offset by rebates, coupons and other concessions.
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