Healthy Skepticism Library item: 13024

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Publication type: news

Goldstein J.
Generics Slow Rise of Drug Spending
The Wall Street Journal 2008 Feb 29
http://blogs.wsj.com/health/2008/02/29/generics-slow-rise-of-drug-spending/

Full text:

Yes, the prices of brand-name drugs are rising. But the money shelled out for prescriptions slowed last year, largely wide use of generic cholesterol drugs.

iStockphoto
The average cost of a prescription was $54.34 in 2007, only $1.09 more than it had been the previous year, according to an analysis from Express Scripts, a pharmacy benefit manager. Total spending on prescription drugs rose 4.7%, down from a 5.9% rise in 2006 and a high of 15.9% in 2000 and 2001, the company said.

The report covers Americans who are commercially insured – about 158 million people. Express Scripts estimated that generic-drug use in 2007 saved these consumers and their insurers about $5.2 billion through lower drug costs and lower co-payments.

The average cost of a prescription for a cholesterol drug fell 15% last year. The drop came amid increased use of cheap, generic versions of Merck’s Zocor and Bristol-Myers Squibb’s Pravachol. Express Scripts (which tends to make higher margins on generics) was one of several big health care players that tried to shift patients to generics from more expensive branded cholesterol drugs, such as Pfizer’s Lipitor.

Average costs for prescriptions of gastrointestinal drugs and antidepressants fell last year, while costs rose sharply for drugs for diabetes (12.8%) and asthma (10.2%). Overall, the average price of generic drugs fell 3.1%, and the average price of branded drugs rose 7.4%.