Generic Growth Slowed Drug Costs In 2007
7 CommentsBy Ed Silverman // February 29th, 2008 // 7:58 am
The ongoing use slowed the growth of US prescription drug costs last year to its lowest level since 1996, according to Express Scripts, the pharmacy benefits manager which, by the way, pushes generics. Total spending on prescription drugs last year rose 4.7 percent, while the average price of a generic drug fell 3.1 percent.
That compared with a 7.4 percent increase in the average price of a brand-name drug, according to data compiled from a random sampling of 3 million of the PBM’s members. Meanwhile, generics amounted to 63.7 percent of prescriptions as of the end of last year, compared with 59.7 percent a year ago.
“You hear nothing but bad news about healthcare expenses going up. This is the lowest this has been in 12 years that we’ve tracked this,” said Steve Miller, chief medical officer for Express Scripts, tells Reuters. “Greater use of generics is clearly the single most important aspect of why it’s coming down.”
The effect of generics was greatest on cholesterol pills, the nation’s most-used drug category. These drugs cost 15.5 percent less in 2007, averaging $67.32 per prescription versus $79.48 in 2006. Even after accounting for a 7.5 percent increase in utilization, the “generic effect” reduced total spending on cholesterol-lowering drugs by 9 percent, according to the PBM.
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[...] Generic Growth Slowed Drug Costs In 2007 [...]
Jack2
So is it the lowest since 1996 or is it the lowest ever recorded, since Steve Miller later says they’ve been doing this for 12 years (96 is 12 years ago).
Dan
Hopefully, branded pharma companies will discontinue paying generic companies in order to delay releasing certain drugs that are identical to the pharma company that is paying these generic companies. This will allow greater penetration of generics into the market.
someone
Abolishing mandatory licensing of generics, so that “regular” patients can access drugs has created an unfair gap in access to healthcare.
The question is, with all the greed and “racketeering” activity going on in the pharma business these days, when do these issues become issues about human rights?
Where are the patients? Why can’t we hear their voices…
Brian
Who should pay the cost of discovery for new medications?
Generic Growth Slowed Drug Costs In 2007
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[...] Why did drug costs slow down in 2007? A bumper crop of generics. [...]