Now more than ever, innovative therapies are transforming care and providing cures for patients fighting life-threatening diseases. In the midst of this medical progress, other health care expenditures such as inpatient care, long-term care and administration, have grown much faster than prescription medicine expenditures. Across OECD countries, other health care services will grow by $23.5 trillion over the next decade, compared to $2.2 trillion for prescription medicines.
Prescription medicines are often the most cost-effective means of preventing and treating disease, and they help patients avoid hospitalizations and other costly health care services.
In fact, cost containment is built into the pharmaceutical life cycle as competition occurs and as generics eventually enter the market. In contrast, many other health care services become more expensive over time.
To learn more check out our International Cost in Context information.
Kevin Haninger Kevin Haninger, PhD, is Vice President, International Advocacy at the Pharmaceutical Research and Manufacturers of America (PhRMA). Kevin leads PhRMA’s international health policy advocacy including development of strategy, analysis, and policy positions on the cost and value of medicines, government pricing and reimbursement, and health technology assessment. Prior to joining PhRMA, Kevin was Senior Economist in the Office of the Secretary at the U.S. Department of Health and Human Services.
Topics: Drug Cost