Doctors will pull out their
prescription pads 3 billion times next year and send every man, woman
and child in the country to the drugstore 11 times.
In 2001, according the National
Institute for Health Care Management, Americans spent $1.54 billion on
prescription medications, 11 percent more than in 2000. That works out
to $430 worth of prescriptions for every American.
This year, the federal Centers for
Medicare and Medicaid Services expect total prescription drug spending
to hit $182.1 billion, and then grow to $204.7 billion in 2004.
The Congressional Budget Office
estimates that between 2003 and 2014, Americans -- and mainly their
health care plans and Medicare/Medicaid -- will spend $4.7 trillion on
prescription medications.
Prescription drugs account for 14
cents of every health care dollar, and about 28 percent of the yearly
increase in health care costs, said Bill Hensley, communications
director for the Washington, D.C.-based BlueCross BlueShield
Association.
Rising drug costs undermine the
affordability of health care plans and inflate employer costs, said
Hensley.
HMOs and health insurers pay 47
percent of all prescription medication costs, according to a study by
lobbying group Public Citizen.
Dr. William Cromie, president and
CEO of Capital District Physicians' Health Plan in Albany, N.Y.,
emphasizes that health plans simply are brokers for the employers who
really pay the medical bills of plan members. Higher costs get passed
on.
Health plans shelled out $66.6
billion in prescription payments in 2001. For 2003, the federal
government projects health plan payments of $88.5 billion for
prescription medications, while in 2004, those payments will top $100
billion.
The right drugs at the right time
can keep people healthy and hold down health care costs, Hensley said.
Out-of-control price spirals undercut that advantage.