BioCentury
ARTICLE | Politics & Policy

CBO: money spent on drugs saves on medical spending

November 30, 2012 2:26 AM UTC

The Congressional Budget Office said that when calculating the budgetary impact of future legislation or proposals on prescription drug use under Medicare, it will now account for an "offsetting effect" on medical spending. Previously, the agency said there was "insufficient evidence" of an offsetting effect of prescription drug use on medical spending, but CBO now estimates that a 1% increase in prescriptions filled by Medicare beneficiaries would cause Medicare's spending on medical services to fall by roughly one-fifth of 1%. The agency said, "pharmaceuticals have the effects of improving or maintaining an individual's health," adding that medications may avert hospital admissions and reduce people's need for medical services. ...