Featured, Healthcare - Friday, May 13, 2011 17:04 - 0 Comments

NCSL Provides Resources on Pharmaceuticals

From State Legislatures Magazine, a publication of the National Conference of State Legislatures:

Prescription drugs continue as one of the more active health policy issues in 2010.  NCSL has followed the state aspects of these issues for a number of years.

Back in 2007, researchers predicted that prescription drug spending would grow at an average annual rate of 8.6 percent until 2016.  However, for 2008, actual annual growth in drug spending slowed drastically.  A federally sponsored annual study documented annual growth of prescription drug spending at 3.2  percent, lower than any other major health care sector and the lowest level in 45 years. Within Medicaid, prescription drug spending decreased 1.8 percent, with 31 states reporting spending less in 2007 than in 2006.

Implementation of Part D has increased prescription drug use among beneficiaries who previously had limited or no drug coverage. However, the expected increase as a result of Part D is being offset by a deceleration in drug price growth. 

• In 2007, 67 percent of all prescription drugs dispensed in the United States were generics — an 18 percent increase from 2005.  That is due in part to patent expirations for several brand-name drugs.

  Spending on anti-depressants, anti-psychotic drugs, drugs to reduce cardiovascular risk, treat pain and insomnia was $127 billion in 2005 and was nearly two-thirds of the total $199 billion spent on all outpatient prescription medicines.

  • $36 billion for prescription drugs to lower blood sugar, reduce cholesterol, or treat other metabolic problems.
  • $33 billion for drugs to reduce high blood pressure and treat heart conditions.
  • $26 billion for central nervous system drugs, including pain killers, sleep aids and attention-deficit disorder drugs.
  • Anti-depressants and anti-psychotic drugs cost $17 billion,
  • gastrointestinal drugs, including antacids and laxatives, cost consumers $15 billion.
• As of mid 2010, 38 states had some type of enacted state pharmaceutical assistance law.   Most use state funds to help pay for a portion of the cost of pharmaceuticals for eligible residents who meet age and income criteria. Some states also have established cost-sharing features including co-payments, annual enrollment fees, or monthly limits.

Other states are operating or authorizing broader discount programs aimed at assisting people lacking private insurance, or even the general consuming public. In separate actions, all 50 states have adjusted Medicaid pharmaceutical policy in the past eight years. NCSL now has more than40 reports and presentations on pharmaceuticals, most of which are online.

For more information visit NCSL’s website here.