Retail Prescription Drug Spending In The National Health Accounts Health Affairs, Vol 23, Issue 1, Copyright © 2004 by Project HOPE

Trends in Rx Spending

Retail Drug Spending Growth Recent rapid spending growth for retail drugs has largely arisen from increased use of new drugs, rather than from increasing prices of existing drugs. A sizable shift in the payment from consumers to third parties has also contributed to faster growth. Strategies such as negotiating for rebates and using tiered copayments have sought to slow spending growth but simultaneously have complicated the estimation of spending in the National Health Accounts (NHA). NHA estimates show that retail pharmaceuticals’ share of health spending is not much different than it was in 1960, although its share of gross domestic product (GDP) has tripled.

Factors Leading to Growth

Rx as Share of Health Spending