CMS: 2011 growth in drug spending low but steady

CMS' Office of the Actuary said the overall growth in national health spending remained low in 2011, which the agency said raises questions over whether U.S. healthcare spending will rebound over the next few years. According to a report issued by the office, total health spending as a share of GDP remained stable at 17.9% in 2011, or about $2.7 trillion, while health care spending in the U.S. grew at a rate of 3.9% in 2011, an annual rate of growth that is identical to that in 2010.

Personal health spending grew at a rate of 4.1% in 2011, compared with a 3.7% rate of growth in 2010. This faster growth was driven in part by a greater growth rate in prescription drug spending that CMS attributed in part to more rapid growth in prescription drug prices, particularly for brand name and specialty drugs, as well as increased spending on new brands. However, CMS said an increased use of generics, patent expirations and a decrease in the growth of the total number of prescriptions that were dispensed in 2011 kept the rate of growth for the year below the 7.8% average annual growth rate for prescription drug spending for 2000-10. ...