• The Reality of US Pharmaceutical Spending

    By all accounts, pharmaceutical spending in the United States is skyrocketing. The “rising cost of prescription drugs” is a major concern for Americans. Public opinion polls consistently indicate that a majority of people believe that drug costs are “unreasonable” and largely attributable to pharmaceutical companies’ quest for profits. However, a look at the underlying data reveals that there is a gap between perception and reality.

  • Annual growth in spending on prescription pharmaceuticals has slowed considerably, from a high of approximately 16% in 2000 to 3% in 2013

    Annual growth in health spending overall (4%) exceeds that of prescription drugs (3%)

    The percentage of health expenditures represented by prescription
    pharmaceuticals has hovered at 10%

  • Recent Trends in US Pharmaceutical Spending

     

    The Reality of US Pharmaceutical Spending - feature image

    Research conducted by Managing Principal Paul Greenberg and Senior Advisor Tamar Sisitsky.

    Source: Department of Health and Human Services, Centers for Medicare & Medicaid Services.