Impact on
Dermatology of rising Drug costs
The majority of new drugs is highly effective and offers better therapy
than existing agents for treatment in
dermatology. It is estimated that spending on
prescription drugs has increased 12% per year.
Drugs are arriving in market faster. The time for arrival of new drug has been slashed from 31 months to 11.7 months which means more and more designer but also expensive drugs. The number of drugs in development and seeking approval has also increased. These include very expensive ‘designer drugs’ and biologic response modifiers.
One reason for this increase in drugs is also consumer demand but the consumer itself has to pay more for these drugs. Prescription costs are rising particularly for those not covered in insurance.
Pharmacy benefit managers negotiate with pharmacies for discounted rates on prescriptions. Often these discounted rates reimburse pharmacies for medication acquisition costs only and include deeply discounted or no dispensing fees. Thus pharmacies pass a higher percentage of operating expenses along to the patients. The net result:
Prescription costs are rising rapidly, particularly for those patients not covered by insurance.
Premiums and deductibles for prescription drug plane are rising fast, but not fast enough to keep up with soaring drug costs.
Several methods to control spiraling prescription costs are in place with more to come.
Impact on dermatology:
Clinicians should be aware of rising drug costs used in management of chronic and acute skin diseases. Substituting less expensive yet just as effective agent would result in annual savings in millions.
Thus the key to controlling pricing will be partnership of physicians with industry and pharmacy to prescribe appropriate medications, keeping costs