HHS report to Congress shows increase in prescription drug spending

Growth in prescription drug spending has accelerated considerably in recent years, and it is projected to continue rising during the next decade, according to a report the Department of Health and Human Services recently submitted to Congress. Specifically, the report shows that growth in retail prescription drug spending increased 12.6% in 2014 – a much higher increase than overall health care spending in the U.S. Total spending on retail prescription drugs in the U.S. was $305 billion in 2014, and spending on non-retail prescription drugs was $119 billion. The report, which analyzes data and trends from 2003-2014, examines innovation and prescription drug development; prescription drug spending by Medicare Parts B and D, Medicaid, the Veterans Health Administration and purchasing arrangements and utilization management; and patient access to drugs.