BioCentury
ARTICLE | Politics & Policy

Healthcare reform expected to increase drug spending in 2014

June 13, 2012 12:33 AM UTC

Prescription drug spending is expected to grow 8.8% in 2014 as the major provisions of the Affordable Care Act take effect, up 6.4 percentage points from an estimated growth rate of 2.4% in 2013, according to a report from CMS' Office of the Actuary. The report attributed the acceleration to an expected increase in the use of drugs by newly insured patients; patients who move to a more generous, subsidized insurance plan; and patients who benefit from the narrowing of the Medicare Part D prescription drug coverage gap. Excluding the effects of the healthcare law, prescription drug spending is projected to increase by 4.1% in 2014. In 2011, prescription drug spending grew an estimated 3.9%, up from a rate of 1.2% in 2010, and accounted for $269.2 billion in health spending. ...