Controlling Spending for Prescription Drugs

Abstract

It is not surprising that spending for prescription drugs is the fastest-growing component of health care in the United States. Just 12 years ago, prescription drugs accounted for 6 percent of total spending on personal health. Today, drugs account for over 9 percent of health spending, and the projections suggest that they could account for 14 percent by 2010.¹ Why this rapid growth? Much has been written about the high prices charged for prescription drugs, and there is no question that the medications new to the market in the past few years are expensive. But the real story is the . . .