Pharmacy Administration, Policy and Regulation Commons^™

Pharmaceuticals: Access, Cost, Pricing, And Directions For The Future, Patricia M. Danzon, Stephen B. Soumerai

Center for Policy Research

Prescription drug expenditures make up less than 10 percent of total personal health care expenditures in the United States, but over the last decade the amount that Americans spend on prescription drugs has grown much faster than any other component of personal health care. For example, between 1999 and 2000, hospital care costs rose about 5 percent, physicians and clinical services 6 percent, while prescription drug expenditures climbed more than 17 percent. In dollar amounts, prescription drug expenditures doubled, from $61 billion to $122 billion, between 1995 and 2000. Is this an unwarranted expense that needs to be controlled, or …