National trends in prescription drug expenditures and projections for 2020

2020 ◽  
Vol 77 (15) ◽  
pp. 1213-1230 ◽  
Author(s):  
Eric M Tichy ◽  
Glen T Schumock ◽  
James M Hoffman ◽  
Katie J Suda ◽  
Matthew H Rim ◽  
...  
Keyword(s):  
Prescription Drug ◽  
New Products ◽  
Pharmaceutical Expenditure ◽  
The United States ◽  
New Drugs ◽  
Drug Spending ◽  
Pharmaceutical Expenditures ◽  
Drug Expenditures ◽  
New Policies ◽  
National Trends

Abstract Purpose To report historical patterns of pharmaceutical expenditures, to identify factors that may influence future spending, and to predict growth in drug spending in 2020 in the United States, with a focus on the nonfederal hospital and clinic sectors. Methods Historical patterns were assessed by examining data on drug purchases from manufacturers using the IQVIA National Sales Perspectives database. Factors that may influence drug spending in hospitals and clinics in 2020 were reviewed, including new drug approvals, patent expirations, and potential new policies or legislation. Focused analyses were conducted for specialty drugs, biosimilars, and diabetes medications. For nonfederal hospitals, clinics, and overall (all sectors), estimates of growth of pharmaceutical expenditures in 2020 were based on a combination of quantitative analyses and expert opinion. Results In 2019, overall US pharmaceutical expenditures grew 5.4% compared to 2018, for a total of $507.9 billion. This increase was driven to similar degrees by prices, utilization, and new drugs. Adalimumab was the top drug in US expenditures in 2019, followed by apixaban and insulin glargine. Drug expenditures were $36.9 billion (a 1.5% increase from 2018) and $90.3 billion (an 11.8% increase from 2018) in nonfederal hospitals and clinics, respectively. In clinics, growth was driven by new products and increased utilization, whereas in hospitals growth was driven by new products and price increases. Several new drugs that will likely influence spending are expected to be approved in 2020. Specialty and cancer drugs will continue to drive expenditures. Conclusion For 2020 we expect overall prescription drug spending to rise by 4.0% to 6.0%, whereas in clinics and hospitals we anticipate increases of 9.0% to 11.0% and 2.0% to 4.0%, respectively, compared to 2019. These national estimates of future pharmaceutical expenditure growth may not be representative of any particular health system because of the myriad of local factors that influence actual spending.

scholarly journals National trends in prescription drug expenditures and projections for 2021

2021 ◽  
Author(s):  
Eric M Tichy ◽  
James M Hoffman ◽  
Katie J Suda ◽  
Matthew H Rim ◽  
Mina Tadrous ◽  
...  
Keyword(s):  
United States ◽  
Prescription Drug ◽  
Pharmaceutical Expenditure ◽  
The United States ◽  
New Drugs ◽  
Drug Spending ◽  
Cancer Drugs ◽  
Pharmaceutical Expenditures ◽  
Drug Expenditures ◽  
New Policies

Abstract Purpose To report historical patterns of pharmaceutical expenditures, to identify factors that may influence future spending, and to predict growth in drug spending in 2021 in the United States, with a focus on the nonfederal hospital and clinic sectors. Methods Historical patterns were assessed by examining data on drug purchases from manufacturers using the IQVIA National Sales Perspectives database. Factors that may influence drug spending in hospitals and clinics in 2021 were reviewed—including new drug approvals, patent expirations, and potential new policies or legislation. Focused analyses were conducted for biosimilars, cancer drugs, generics, coronavirus disease 2019 (COVID-19) pandemic influence, and specialty drugs. For nonfederal hospitals, clinics, and overall (all sectors), estimates of growth of pharmaceutical expenditures in 2021 were based on a combination of quantitative analyses and expert opinion. Results In 2020, overall pharmaceutical expenditures in the United States grew 4.9% compared to 2019, for a total of $535.3 billion. Utilization (a 2.9% increase) and new drugs (a 1.8% increase) drove this increase, with price changes having minimal influence (a 0.3% increase). Adalimumab was the top drug in 2020, followed by apixaban and insulin glargine. Drug expenditures were $35.3 billion (a 4.6% decrease) and $98.4 billion (an 8.1% increase) in nonfederal hospitals and clinics, respectively. In clinics, growth was driven by new products and increased utilization, whereas in hospitals the decrease in expenditures was driven by reduced utilization. Several new drugs that will influence spending are expected to be approved in 2021. Specialty and cancer drugs will continue to drive expenditures along with the evolution of the COVID-19 pandemic. Conclusion For 2021, we expect overall prescription drug spending to rise by 4% to 6%, whereas in clinics and hospitals we anticipate increases of 7% to 9% and 3% to 5%, respectively, compared to 2020. These national estimates of future pharmaceutical expenditure growth may not be representative of any particular health system because of the myriad of local factors that influence actual spending.

National trends in prescription drug expenditures and projections for 2019

2019 ◽  
Vol 76 (15) ◽  
pp. 1105-1121 ◽  
Author(s):  
Glen T Schumock ◽  
JoAnn Stubbings ◽  
James M Hoffman ◽  
Michelle D Wiest ◽  
Katie J Suda ◽  
...  
Keyword(s):  
National Level ◽  
Drug Expenditure ◽  
Drug Spending ◽  
Pharmaceutical Expenditures ◽  
Moderate Growth ◽  
Expenditure Data ◽  
Drug Expenditures ◽  
Utilization Patterns ◽  
Quantitative Analyses ◽  
National Trends

AbstractPurposeHistorical trends and factors likely to influence future pharmaceutical expenditures are discussed, and projections are made for drug spending in 2019 in nonfederal hospitals, clinics, and overall (all sectors).MethodsDrug expenditure data through calendar year 2018 were obtained from the IQVIA National Sales Perspectives database and analyzed. New drug approvals, patent expirations, and other factors that may influence drug spending in hospitals and clinics in 2019 were also reviewed. Expenditure projections for 2019 for nonfederal hospitals, clinics, and overall (all sectors) were made through a combination of quantitative analyses and expert opinion.ResultsU.S. prescription sales in calendar year 2018 totaled $476.2 billion, a 5.5% increase from 2017 spending. The top 3 drugs by expenditures were adalimumab ($19.1 billion), insulin glargine ($9.3 billion), and etanercept ($8.0 billion). Prescription expenditures in nonfederal hospitals totaled $35.8 billion, a 4.8% increase from 2017. Expenditures in clinics in 2018 increased by 13.0% to $80.5 billion. The increase in spending in nonfederal hospitals was largely driven by new products and increased utilization of existing products. The list of the top 25 drugs by expenditures in nonfederal hospitals and clinics was dominated by specialty drugs.ConclusionWe predict continued moderate growth of 4–6% in overall drug expenditures (across the entire U.S. market). We expect the clinic sector to continue to experience high (11–13%) growth in drug spending in 2019. Finally, for nonfederal hospitals we anticipate growth in the range of 3–5%. These estimates are at the national level. Health-system pharmacy leaders should carefully examine local drug utilization patterns to determine their own organization’s anticipated spending in 2019.

National trends in prescription drug expenditures and projections for 2017

2017 ◽  
Vol 74 (15) ◽  
pp. 1158-1173 ◽  
Author(s):  
Glen T. Schumock ◽  
Edward C. Li ◽  
Michelle D. Wiest ◽  
Katie J. Suda ◽  
JoAnn Stubbings ◽  
...  
Keyword(s):  
Prescription Drug ◽  
Drug Expenditures ◽  
National Trends

National trends in prescription drug expenditures and projections for 2014

2014 ◽  
Vol 71 (6) ◽  
pp. 482-499 ◽  
Author(s):  
Glen T. Schumock ◽  
Edward C. Li ◽  
Katie J. Suda ◽  
Linda M. Matusiak ◽  
Robert J. Hunkler ◽  
...  
Keyword(s):  
Prescription Drug ◽  
Drug Expenditures ◽  
National Trends

National trends in prescription drug expenditures and projections for 2016

2016 ◽  
Vol 73 (14) ◽  
pp. 1058-1075 ◽  
Author(s):  
Glen T. Schumock ◽  
Edward C. Li ◽  
Katie J. Suda ◽  
Michelle D. Wiest ◽  
JoAnn Stubbings ◽  
...  
Keyword(s):  
Prescription Drug ◽  
Drug Expenditures ◽  
National Trends

Pharmaceutical Price and Spending Controls in France: Lessons for the United States

2020 ◽  
Vol 50 (2) ◽  
pp. 156-165 ◽  
Author(s):  
Marc A. Rodwin
Keyword(s):  
The United States ◽  
New Drugs ◽  
Drug Spending ◽  
Control Drug ◽  
Price Increases ◽  
External Reference ◽  
Therapeutic Value ◽  
Global Budgets ◽  
Pharmaceutical Spending ◽  
Spending Growth

As U.S. policymakers consider strategies to control pharmaceutical spending, they can learn from France, which has stopped drug spending growth without slowing access to innovative medicines. France determines the comparative therapeutic value of new drugs. Insurance pays more for drugs superior to their comparator and the same or less for drugs offering modest or no improvement. Contracts require discounts for high sales volume and prohibit price increases. In addition, payers reduce prices of older drugs. Furthermore, Parliament sets an insurance pharmaceutical spending budget, and manufacturers pay clawbacks when spending exceeds the budget. France offers these lessons: setting prices based on added therapeutic value is a principled means to cap new drug prices and provides incentives for manufacturers to negotiate prices. Restricting formularies can help lower prices. Insurers can link prices and quantity to control spending and improper uses. Insurers can use global budgets to control spending and negotiate prices. Contracts can prevent manufacturers from raising prices after launch. External reference pricing can reduce price discrimination but is difficult to implement. Nations can ensure rapid access to new drugs while controlling prices. Regulation and competition are complementary strategies to control drug spending.

scholarly journals Association between physician adoption of a new oral anti-diabetic medication and Medicare and Medicaid drug spending

2019 ◽  
Vol 19 (1) ◽  
Author(s):  
Ilinca D. Metes ◽  
Lingshu Xue ◽  
Chung-Chou H. Chang ◽  
Haiden A. Huskamp ◽  
Walid F. Gellad ◽  
...  
Keyword(s):  
Prescription Drug ◽  
The United States ◽  
County Level ◽  
Fee For Service ◽  
Drug Spending ◽  
Part D ◽  
Drug Classes ◽  
Level Data ◽  
Prescription Drug Spending ◽  
Physician Adoption

Abstract Background In the United States, there is well-documented regional variation in prescription drug spending. However, the specific role of physician adoption of brand name drugs on the variation in patient-level prescription drug spending is still being investigated across a multitude of drug classes. Our study aims to add to the literature by determining the association between physician adoption of a first-in-class anti-diabetic (AD) drug, sitagliptin, and AD drug spending in the Medicare and Medicaid populations in Pennsylvania. Methods We obtained physician-level data from QuintilesIMS Xponent™ database for Pennsylvania and constructed county-level measures of time to adoption and share of physicians adopting sitagliptin in its first year post-introduction. We additionally measured total AD drug spending for all Medicare fee-for-service and Part D enrollees (N = 125,264) and all Medicaid (N = 50,836) enrollees with type II diabetes in Pennsylvania for 2011. Finite mixture model regression, adjusting for patient socio-demographic/clinical characteristics, was used to examine the association between physician adoption of sitagliptin and AD drug spending. Results Physician adoption of sitagliptin varied from 44 to 99% across the state’s 67 counties. Average per capita AD spending was $1340 (SD $1764) in Medicare and $1291 (SD $1881) in Medicaid. A 10% increase in the share of physicians adopting sitagliptin in a county was associated with a 3.5% (95% CI: 2.0–4.9) and 5.3% (95% CI: 0.3–10.3) increase in drug spending for the Medicare and Medicaid populations, respectively. Conclusions In a medication market with many choices, county-level adoption of sitagliptin was positively associated with AD spending in Medicare and Medicaid, two programs with different approaches to formulary management.

National trends in prescription drug expenditures and projections for 2015

2015 ◽  
Vol 72 (9) ◽  
pp. 717-736 ◽  
Author(s):  
Glen T. Schumock ◽  
Edward C. Li ◽  
Katie J. Suda ◽  
Michelle D. Wiest ◽  
Joann Stubbings ◽  
...  
Keyword(s):  
Prescription Drug ◽  
Drug Expenditures ◽  
National Trends
Sign in / Sign up

Export Citation Format

Share Document