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By Maggie Fox
According to a study released Wednesday, renowned branded prescription drug prices continue to drive up spending on drugs, even though more patients are getting cheaper generics.
And spending is not necessarily motivated by the incredibly expensive but surprisingly effective anti-cancer drugs that make the headlines. The analysis shows that most of the money goes to three proprietary drugs used in the treatment of rheumatoid arthritis, Crohn's disease and other autoimmune diseases.
Federal health officials and the health insurance sector are encouraging doctors to prescribe more generic drugs in hopes of saving money, which is the case. But new data from the Blue Cross and the Blue Shield Association shows that member insurance companies are paying more than ever for brand name drugs.
"The expensive branded prescription drugs accounted for only 17% of the total prescriptions executed, but accounted for 79% of total prescription drug expenditures ($ 79.5 billion)," said Blue Cross Blue Shield in his report.
"The most expensive spending on branded drugs has increased by 4% since 2016."
The price of drugs is one of the main goals of patient groups and Congress. Although drug spending accounts for only 10% of the $ 3.3 trillion spent on health care in the United States in a year, the sometimes ridiculous prices charged for new cancer treatments, hepatitis and therapy immune system regularly provokes criticism.
Most Americans get their health insurance coverage, including prescription drugs, from an employer who has private health insurance. Blue Cross Blue Shield's analysis examines drug spending from the perspective of a large private insurer.
The company's researchers analyzed medical claims for 41 million clients and extrapolated them to the 88 million people covered by the BCBS.
The company spends $ 100 billion on prescription drugs, or 20% of all expenses.
"Total spending on prescription drugs has increased by 10% per year since 2010," the report says. And most prescriptions – 82% – were for cheaper generic drugs.
But the bulk of the spending has been on branded prescription drugs. "Expensive brand drugs accounted for only 18% of the total prescriptions dispensed, but 78% of total expenses," the report says.
"The costs of single-source drugs without a generic alternative have increased more than twice as fast as average annual drug expenditures.
While new cancer immunotherapies and anti-hepatitis drugs hit the headlines with their price tags over $ 100,000, the largest costs were generated by three drugs of choice for the treatment of rheumatoid arthritis. Rheumatoid: Humira, Remicade and Enbrel, according to the analysis.
Novolog, a fast-acting insulin, was the fourth cost factor and Neulasta, a product that stimulates the immune system of cancer patients, ranked fifth.
Humira, an anti-inflammatory that impairs the immune system, is currently the best-selling drug in the world. It costs about $ 38,000 a year, according to SSR Health. Spending is high in part because rheumatoid arthritis is widespread, affecting between 1.3 and 1.8 million Americans.
The analysis does not include the effects of drug rebates, which companies often cite as a way to reduce the costs of their products.
"Constant annual increases in the costs of patent-protected prescriptions guarantee the majority of brand-name spending, with 5% growth in the last year alone," the report concludes.
In 2017, the Institute for Independent Economic and Clinical Review found that targeted treatments for rheumatoid arthritis were very effective but that they probably cost more than their value.
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