The price of prescription drugs is in the news and certainly in the political arena, but as usual politicians are taking the broad brush approach which can be misleading.
The cost of drugs is going up for three reasons: 🤑Utilization increase 🤑Price increase 🤑Growth of specialty drugs
For most drugs utilization is the main driver, but for specialty drugs the opposite is true. New specialty drugs are expensive, perhaps overly expensive, but a complete assessment (something alien to politicians) is not possible without considering the cost savings resulting from using these drugs… medical care, hospitalization, lost productivity, etc.
Keep in mind that trading price increases for greater utilization because of the greater affordability does not necessarily decrease overall spending and may have the opposite affect.
Drug Trend Report (PMPY = per member per year)