Drug spending could grow at a rate of 6.1% annually by 2020

The amount the U.S. spends on prescription drugs is expected to grow at an accelerated rate in the next 10 years. By 2020, spending on prescription drugs is projected to grow as much as 6.1 percent annually, according to an estimate published by CMS Office of the Actuary.

All together, national health spending is projected to grow 5.5 percent on average annually and reach nearly $6 trillion by 2027.

Included in the total spending increase is prescription drug spending, which only includes drugs dispensed at a pharmacy. Prescription drug spending is expected to have grown 3.3 percent in 2018. In 2019, it is expected to grow 4.6 percent, and from 2020-27 prescription drug spending is expected to grow at a rate of 6.1 percent.

CMS said the expected increase is influenced by the higher use anticipated from new drugs entering the market and efforts by payers and providers that encourage patients with chronic conditions to treat their disease by adhering to their medication regimens.

Read the full estimate here.

 

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