We have seen a deluge of data recently from government actuaries and pharmacy benefit managers showing a dramatic slowdown in medicine spending growth.
And the QuintilesIMS Medicines Use and Spending in the U.S. — A Review of 2016 and Outlook to 2021 report further supports this data.
Here are four things you should know about the latest QuintilesIMS report:
- After accounting for discounts and rebates, spending on medicines grew just 4.8 percent in 2016.
- Prices for brand-name medicines increased just 3.5 percent after accounting for negotiated discounts and rebates.
- Prices for brand-name medicines after accounting for negotiated discounts and rebates are projected to grow between 2 percent and 5 percent through 2021. This lower spending follows the loss of patent protection projected to total $103 billion through 2021, which excludes biologics that will face competition from biosimilars entering the market.
- More than half (52 percent) of commercial patients’ out-of-pocket spending for brand medicines were filled in the deductible or with coinsurance, meaning patients paid the full list price for their medicines, even if their insurer receives a discount.
Discussions about the cost and affordability of medicines are important. Too often, patients struggle to access the medicines they need and we need focus on advancing common sense, practical solutions that bring down health care costs and lower out-of-pocket costs for patients. But, in order to have productive conversations, we need to be using the same set of facts.
Learn more about the cost and value of medicines at phrma.org/cost.
Holly Campbell Holly Campbell is a deputy vice president of public affairs at PhRMA focusing on the cost and value of medicines. Prior to joining PhRMA, Holly worked for large and small public relations firms where she provided strategic communications counsel, media relations and partnership expertise to health care and pharmaceutical clients. In her free time, she enjoys taking barre classes, trying new restaurants and spending time with Boss and Poppy, her rescue pups.