Newly released US government actuary and pharmacy benefit manager data confirm previous projections of a significant decline in medicine spending growth.
After accounting for discounts and rebates, medicine spending growth in 2016 dipped into the low single digits, with growth rates between 2% and 5%, a posting on Pharmaceutical Research and Manufacturers of America (PhRMA) website notes.
National Health Expenditure (NHE) projections released this week by the Centers for Medicare & Medicaid Services found between 2015 and 2016 medicine spending had the largest decline in spending growth of all health care categories. Medicine spending grew only 5% in 2016 compared to 9% in 2015. And medicine spending and total health care spending are projected to grow by approximately 6% annually over the next decade.
Express Scripts’ annual Drug Trend Report found spending on medicines increased by just 3.8% in 2016, versus 5.2% in 2015. Express Scripts also found prices for brand-name medicines increased just 2.5% after accounting for discounts and rebates negotiated.
Prime Therapeutics’ just announced spending on medicines increased by just 2.5% in 2016.
This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.
Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
Daily roundup of key events in pharma and biotech.
Monthly in-depth briefings on Boardroom appointments and M&A news.
Choose from a cost-effective annual package or a flexible monthly subscription
The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed