Lower growth rate for drug spending

National health spending in 2007: slower drug spending contributes to lowest rate of overall growth since 1998.

In 2007, U.S. health care spending growth slowed to its lowest rate since 1998, increasing 6.1 percent to $2.2 trillion, or $7,421 per person. The health care portion of gross domestic product reached 16.2 percent, up from 16.0 percent in 2006. Slower growth in 2007 was largely attributed to retail prescription drug spending and government administration. With the exception of prescription drug...

National Health Spending In 2014: Faster Growth Driven By Coverage Expansion And Prescription Drug Spending.

US health care spending increased 5.3 percent to $3.0 trillion in 2014. On a per capita basis, health spending was $9,523 in 2014, an increase of 4.5 percent from 2013. The share of gross domestic product devoted to health care spending was 17.5 percent, up from 17.3 percent in 2013. The faster growth in 2014 that followed five consecutive years of historically low growth was primarily due to t...

Growth in Medicare Spending

Medicare is one of our most popular public programs and constitutes the largest public health insurance program in the United States. But it is facing major challenges in adjusting to an aging society. Either the program and/or its financing will need to change to meet the greater demands of an increase in the number of elderly and disabled persons served by the program and the expected increas...

Spending on New Drug Development

This paper replicates DiMasi et al (2003, 2004) estimates of expenditure on new drug development using publicly available data. The paper estimates that average expenditure on drugs in human clinical trials is around $25m per year, with $18m per year on drugs in Phase 1, $33m on drugs in Phase 2 and $19m per year on drugs in Phase 3 of the human clinical trials. The paper’s estimated expenditur...

Government Spending and Growth