Health Spending Growth Slows in 2003

Washington, DC; 01.11.05 — Mark Merritt, President of the Pharmaceutical Care Management Association (PCMA), released the following statement on new data out today on US prescription drug spending in 2003. The data analysis was conducted by researchers at the Centers for Medicare & Medicaid Services (CMS) and posted on Health Affairs’ website. PCMA is the national association representing America’s pharmacy benefit managers (PBMs):

“These new government data out today provide welcome news that PBMs’ tools and techniques have helped reduce the rate of growth in prescription drug spending by nearly 40 percent from a peak in 1999. Multi-tier formularies and expanded access to cost-effective generics are among the chief causes cited by researchers for the marked decline in the rate of growth in US drug spending.

“These data also highlight other challenges. In Medicaid â?? which does not utilize the full menu of PBMs’ tools â?? prescription drug spending grew at more than twice the rate of private health-insurance drug spending. According to the analysis, this growth was due in part to states being limited in the tools they could use to curtail drug-spending growth. In addition, consumers and private and public purchasers are spending more than ever on prescriptions, but without the right kind of information that can help them compare the effectiveness and safety of competing drugs.

“These new government data underscore the challenges facing consumers, employers, physicians, pharmacists, PBMs, drug makers, and policymakers in the New Year. Now is the time to jumpstart a prescription-drug discussion centered on information, quality, and affordability. Otherwise, the progress achieved over the past four years could prove elusive and threaten to unravel the system over the long term.”

RELATED LINKS:
Health Spending Growth Slows in 2003

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The Pharmaceutical Care Management Association (PCMA) is the national trade association representing America’s pharmacy benefit managers (PBMs). PCMA member companies provide pharmaceutical care management services to more than 200 million Americans.

Contact Information:
Phil Blando
202-207-3614