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A Conversation on Prescription Drug Pricing


As the discussion intensifies, one of Avalere's experts provides keen observations on what you need to know about this topic.

Recently, Caroline Pearson moderated a panel, “Can We Afford to Cure Disease?” at The Milken Institute’s Global Conference. She was joined by key opinion leaders from industry, payer and provider organizations.

In the past five years, media coverage of the issue has increased nearly five-fold. So what’s driving the conversation? The passage of major policies, including the Affordable Care Act, and new drug approvals in the specialty arena.

National Health Expenditure data shows that prescription drug spending grew significantly (12.2%) in 2014 due to the introduction of new treatments. Since then, the rate has dropped off and is expected to be 4.9% for 2016, which is roughly in line with predictions for all health expenditures. While growth in prescription drug spend has increased in recent years, it’s important to note that it makes up 9.8% of overall healthcare expenditures.

Download Caroline’s presentation here.

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