Medicines Use and Spending Shifts: A Review of the Use of Medicines in the U.S. in 2014
In this report we bring together several perspectives on 2014: total system spending on medicines at an aggregate and segmented level; the evolution of healthcare demand, delivery and payment systems; patient out-of-pocket costs for medical and pharmacy benefits including retail prescription co-pays; and transformations in disease treatment resulting from newly approved medicines.
News & Media Coverage
Los Angeles Times: Prescription drug spending jumps 13% to record $374 billion in 2014
Bloomberg Business: U.S. Drug Spending Increases Most in 13 Years to $373.9 Billion
Below, IMS Institute Executive Director Murray Aitken discusses key findings in this report. Click here to view additional videos from this report.
Spending on medicines increased 13.1% in 2014, the highest level since 2001 when spending growth reached 17.0%
- Nominal spending on pharmaceuticals reached $373.9 billion in 2014, an increase of 13.1%, the highest increase since 2001 when spending increased 17.0%
- The sharp increase in spending in 2014 was driven by new brands, lower impact from patent expiries and increases in the list prices of branded medicines
Specialty medicines now account for one-third of spending driven by a wave of recent innovations
- Spending on new brands increased by $20.2Bn in 2014, triple the previous level
- Over 161,000 patients started treatment for hepatits C in 2014, more than four times the previous peak and nearly ten times more than in the previous year as spending on widely adopted new treatments totaled $12.3Bn
- Specialty medicines now account for one-third of spending, driven by a wave of recent innovations in treatment for autoimmune diseases, hepatitis C and cancer
- Specialty medicine spending increased by 26.5% to $124.1Bn in 2014; the increase was 16.3% excluding hepatitis C treatments
- Increasing numbers of launches and growth in spending on specialty products in 2014 were driven by growing R&D focus on specialty medicines over the past decade
Medicaid was the leading driver of retail prescription growth in the first year of expanded coverage under the Affordable Care Act
- Medicaid was the leading driver of retail prescription growth in the first year of expanded coverage under the Affordable Care Act
- Overall Medicaid prescriptions increased 16.8% in 2014, accounting for 70% of the growth in retail prescription demand
- Medicaid prescriptions increased 25.4% in states that expanded Medicaid coverage, and 2.8% in states that did not expand Medicaid coverage
- Nearly a quarter of exchange plan patients and 9% of Medicaid patients may have been previously uninsured
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