Earlier today, the Pharmaceutical Research and Manufacturers of America (PhRMA) announced that its member companies have invested more than $600 billion in the search for new treatments and cures since 2000 – including an estimated $51.2 billion in 2014 alone.
This is an exciting time for biomedical research as innovation is at an all-time high. To continue this positive trajectory, researchers need training opportunities that embrace team science approaches and cross all stakeholder sectors.
Over the past few weeks, we’ve discussed how Medicare Part D helps patients with a number of different conditions including Parkinson’s, artery plaque, congestive heart failure, chronic obstructive pulmonary disease and dehydration save, just by adhering to the medicines they get through their Part D plans. This week, we’re highlighting one way Medicare aims to improve the use of medications and adherence in Part D: medication therapy management (MTM).
Spending on Medicines: The Big Picture – PhRMA’s new video explains how high generic utilization rates, competition among brand-name medicines and aggressive tactics by insurers and pharmacy benefit managers to negotiate lower prices help to keep costs under control.
Competitive Biopharmaceutical Marketplace Help to Control Costs – Spending on retail prescription medicines has consistently accounted for just 10 percent of health care spending
In case you missed it, an article in the latest issue of Managed Care Magazine explores the 340B drug discount program. Columnist Richard Kirkner calls 340B a “well-intended program [that] has become a textbook example of unintended consequences.”
Krikner points to the following issues contributing to the current state of the program:
- Lack of program oversight and accountability. “Congress has never given the agency that runs 340B the power to write clear guidelines on who exactly should get these drugs and what providers should do with the savings.”
There has been a lot of discussion lately on spending on prescription medicines. And too often this dialogue fails to acknowledge that retail prescription medicines have consistently accounted for just 10 percent of U.S. health care spending, even though biopharmaceutical companies have brought more than 500 new medicines to U.S. patients in the past 15 years. In fact, government actuaries project this share of spending to remain stable through the next decade.
How is this possible?
Our new video explains how high generic utilization rates, competition among brand-name medicines and aggressive tactics by insurers and pharmacy benefit managers to negotiate lower prices all help to keep costs under control.
At a time of unprecedented scientific breakthroughs in oncology, personalized medicine is enabling more accurate diagnoses and more targeted treatments, increasing the overall efficiency and effectiveness of cancer care. As President Obama recognized earlier this year, in the announcement of his Precision Medicine Initiative, personalized medicine has reversed diseases once thought to be unstoppable and as a nation, we need to do more to harness the benefits of innovative treatments.
Too often conversations on the cost of medicines fail to acknowledge the competitive biopharmaceutical market that exists in the U.S., which helps to control costs while encouraging the development of innovative new therapies.
Spending on retail prescription medicines has consistently accounted for just 10 percent of health care spending – a figure that is projected by government actuaries to remain stable through the next decade. This is possible because of high utilization rates of generics, competition among brand-name medicines and aggressive tactics by insurers and pharmacy benefit managers to negotiate lower prices.
Last year was unique for our nation’s health care system. Nearly 10 million uninsured patients gained health insurance coverage – the largest gain in four decades -- and the FDA’s Center for Drug Evaluation and Research (CDER) approved a record of more than 40 new medicines. Given these historical milestones, an increase in the growth in spending on medicines last year was to be expected. Even so, that rise should not overshadow the fact that spending on retail prescription medicines have consistently accounted for just 10 percent of U.S. health care spending – a figure that is projected by government actuaries to remain stable through the next decade.
Topics: IMS Institute
We often talk about the importance of adherence on The Catalyst, but it’s a topic that isn’t widely understood. Consider this: when patients prematurely discontinue their medication, it costs the U.S. economy an estimated $100 billion to $300 billion annually. One of the things that makes the Medicare Part D program so valuable to patients and the broader health care ecosystem is that it encourages adherence by helping individuals get the medicines they need.