Fiscal Impact of 10 Breakthrough Drugs

Avalere recently released an analysis of the potential financial effects of 10 upcoming drugs on federal healthcare spending. Here are some key findings from the report:

·         Drug spending increased 13.1% from 2013-2014, with almost half the growth attributed to new products.

·         Specialty medications accounted for 78% of the $20.2 billion increase in new brand spending in 2014.

·         The total projected cost to the government of the 10 pipeline medications over 10 years is $49.3 billion.

·         Medicare accounts for $31.3 billion, or 63% of the total cost of these medications.

·         $15.8 billion of the total projected cost is for state and federal Medicaid spend.

·         Subsidies provided through exchange plans account for $2.1 billion of the total projected cost.

Source: Avalere, June 8, 2015