8 medicine use and spending trends

Medicine spending continued to increase in 2017 despite a sharp decline in prescription opioid use, according to a study from the Iqvia Institute for Human Data Science.

For the study, Iqvia used proprietary information from wholesalers and company direct sales, along with company financial filings with the Securities and Exchange Commission and other data, to determine U.S. medicine use and spending last year and on into the future.

Here are eight findings.

1. Inpatient and outpatient medicine spending increased 0.6 percent in 2017 after off-invoice discounts and rebates.

2. Net inpatient and outpatient medicine spending fell 2.1 percent in 2017 when only taking into account retail and mail-order pharmacy distribution.

3. Per capita inpatient and outpatient medicine spending fell 2.2 percent in 2017 when adjusted for manufacturer discounts and rebates, in addition to economic and population growth, according to the study.

4. Net inpatient and outpatient medicine spending grew at a slower pace last year compared to the year prior. Growth reached $12.1 billion in 2016 but only $700 million in 2017.

5. Iqvia attributed net spending growth in 2017 primarily to new drug brands on the market for less than two years.

6. Between the mid 1990s and 2017, prescription opioid volume peaked in 2011 at 240 billion milligrams of morphine equivalents, according to the study. This number was at 171 billion in 2017.

7. Patients' expenses for medicines reached $57.8 billion in 2017. This included copays, coinsurance and other coverage-related payments.

8. Iqvia estimated net total medicine spending growth will increase 2 to 5 percent, on average, by 2022, and net retail and mail-order medicine spending will grow at 1 to 4 percent during that time period.

Read more about the findings here.

More articles on healthcare finance:
6 recent hospital, health system outlook and credit rating actions
J&J heir gifts Boca Raton Regional Hospital $25M: 3 things to know
Memorial Hermann exec: Consumers expect convenient bill pay — It's time for healthcare to catch up

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars