The Rising Utilization and Costs of Prescription Drugs – July 2004

According to Forbes Magazine, U.S. expenditures on pharmaceuticals have increased from $82 billion in 1992 to $192 billion in 2002. This is a trend that shows no signs of abating; a 2003 Health Affairs study estimates that prescription drug insurance costs for purchasers will increase by an average 11.1 percent annually from 2002 through 2012. Throughout the 1990’s, more prescriptions were written, prices for individual drugs increased, and prescribing patterns favored newer, more expensive drugs.