Breakthrough Medications Save Money and Lives

According to a 2014 federal report by the Centers for Medicare and Medicaid Services (CMS), retail prescription medicines will continue to account for less than 10 percent of total heath care spending through 2023 – the same percentage as it was in 1960.1

The argument that specialty therapies are the main healthcare cost driver is misleading when the fact is 86 percent of the spending is used for lower cost generic medications.2
Less than five percent of U.S. patients, typically those with severe or rare health conditions, use higher-price “specialty medications” – meaning the vast majority of patients use lower cost, more affordable prescriptions.3

The U.S. will spend three times more on hospital care over the next decade than the total spending on prescription medicines.1.
From 1998 to 2003, insurance companies increase premiums by an average of $104.62 per person. During that same period, drug costs only rose by $22.48 per person.4

Breakthrough Medications Save Money and Lives

Patients who have access and adhere to their medication regimens enjoy greatly improved health outcomes and make less use of more costly health services such as emergency room and doctor visits, hospitalizations and long-term care.5,6,7,8

Chart sources: 9,10,11,12

“Virtually every study of medical innovation suggests that changes in the nature of medical care over time are clearly worth the cost.”14– David Cutler Harvard University Health Care Economist & Health Care Advisor to President Obama

“Over the last half century improvements in health have been as valuable as all other sources of economic growth and productivity combined.”

– Kevin Murphy, PhD, and Robert Topel, PhD University of Chicago Economists

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1 Health Expenditures, Accessed November, 2015.
2 Medicine use and shifting costs of healthcare: A review of the use of medicines in the United States in 2013. IMS Institute for Healthcare Informatics. April 2014. . Accessed November, 2015.
3 Specialty Drugs: Cost, Impact, And Value. Health Affairs Blog. October 6, 2014. -October-issuespecialty-drugs-cost-impact-and-value/. Accessed November, 2015.
4 Peter Pitts. The Payers Pity Party. Morning Consult. March 9, 2015. Accessed November, 2015.
5 Understanding Specialty Drug Forecasts. Milliman. February, 2015. Accessed November, 2015.
6 DiMatteo MR, Giordani PJ, Lepper HS, Croghan TW. Patient adherence and medical treatment outcomes: a meta-analysis. Med Care. 2002;40(9):794-811.
7 McDermott MM, Schmitt B, Wallner E. Impact of medication nonadherence on coronary heart disease outcomes: a critical review. Arch Intern Med. 1997;157(17):1921—9
8 Lau DT, Nau DP. Oral antihyperglycemic medication nonadherence and subsequent hospitalization among individuals with type 2 diabetes. Diabetes Care. 2004;27(9)2149-53.
9 Sokol MC, McGuigan KA, Verbrugge RR, Epstein RS. Impact of medication adherence on hospitalization risk and healthcare cost. Med Care. 2005;43(6):521-30.
10 Biopharmaceutical Industry : The Value of Access to Innovative Medicines powerpoint presentation, slide 10. PhRMA. November 14, 2014.
11 US Centers for Disease Control and Prevention (CDC). Health, United States, 2013, with special feature on prescription drugs. Atlanta, Ga.: CDC. Published 2014. Accessed November, 2015.
12 Linchenberg, F.R. (2012). Pharmaceutical Innovation and Longevity Growth in 30 Developing and High Income Countries, 2000-2009. Working Paper 18235. National Bureau of Economic Research.
13 National Cancer Institute, Survival Epidemiology and End Results (SEER), posted to website 2013. Retrieved from http://seer.cancer.gove/csr/1975-
2005/accessible -contents.html.
14 Peter Pitts. The Payers Pity Party. Morning Consult. March 9, 2015. Accessed November, 2015.