Last year, the U.S. Food and Drug Administration approved a record 59 new treatments and cures. During this incredible period of innovation, medicine price growth continued to slow dramatically.
Medicine prices grew just 1.6 percent in 2018, the slowest rate since 2013, according to the latest data from Altarum Institute. Between December 2017 and December 2018, medicine price growth declined by 0.6 percent, the lowest year-over-year rate in 45 years. The data also show that medicine prices grew below the rate of overall health care price growth, which was 1.8 percent in 2018.
Another report from the U.S. Bureau of Labor Statistics shows more evidence of this slowing growth trend. According to these data, when adjusted for inflation, medicine prices fell 2.8 percent from December 2017 to December 2018.
These reports are further evidence that we don’t have to choose between innovation and affordability.
Learn more at LetsTalkAboutCost.org.
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.
Topics: Drug Cost