Good medicines are decreasing healthcare spending but why are drug prices in the U.S. higher than other parts of the world?
But don’t think that means it’s ok for drug companies to charge as much as they do for so many of their products. Here’s why.David Cutler , healthcare spending among elderly Americans grew less than expected in the last decade. Here’s a picture of that finding:
But why is it growing less than expected? Cutler and colleagues break down spending trends by disease categories and find some fascinating patterns. Most importantly, they find that a huge part of the slowdown is due to a reduction in spending among people with cardiovascular disease—heart attacks, strokes, and the like. Here's a picture of that result:
But don’t conclude that the cost-saving benefits of cholesterol and blood pressure drugs justify the high price of many medications that have come to market in recent years. Right now, there’s lots of inexpensive medications to treat high blood pressure and high cholesterol, including a plethora of generic products. That means we can spend relatively modest amounts of money treating blood pressure and cholesterol and receive significant health benefits.
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