U.S. Prescription Drug Spending Likely to Double in Five Years, Study Finds

U.S. spending on pharmaceuticals will likely double over the next five years, "fueled" by treating chronic conditions among baby boomers, not the elderly, according to a report by Merck-Medco, the largest pharmacy benefits management company in the nation, the AP/Las Vegas Sun reports. Slightly more than half of the increased spending will be linked to cardiovascular medicines and drugs for central nervous system disorders, including antidepressants and pain medications. Merck-Medco found that while seniors ages 65 to 79 spend the highest on average per person for prescription drugs annually, at $1,400 a year, the rate of expected increased spending on medications was the lowest for that age group (AP/Las Vegas Sun, 6/5). The study found that the largest spending increase will be among those ages 40 to 55, who will use drugs for allergies, gastrointestinal disorders, heart disease and pain management (USA Today, 6/6). While spending on prescription drugs among Merck-Medco plans grew 14% last year, spending is expected to grow 15% to 20% annually in coming years, according to Glen Stettin, Merck-Medco's vice president of clinical products. He attributed the rising costs to increased use of name-brand drugs and the fact that many patients now take "multiple medicines" to treat chronic conditions. However, Stettin said "relief is in sight," adding, "In the next three to five years, there will be patent expirations for brand name drugs representing $20 billion in annual sales" (AP/Las Vegas Sun, 6/5).