The cost of prescription drugs has risen steadily over the past decade and shows no sign of stopping.
A survey of 60 leading health care vendors conducted by Aon, a major human resources consulting firm, shows that the cost of prescription drugs is on pace to increase by 10 percent in the next year, up from the estimated 6.3 increase over the past year. The cost of specialty pharmacy drugs is rising even faster — 22.7 percent in the coming year versus the estimated 18.2 percent rise over the past 12 months.
"There is a robust pipeline of specialty drugs, which is contributing to the dramatic spike we see in cost trend," said John Malley, head of Aon Health's Innovation Pharmacy Team. "Oncology drugs have been filling the pipeline and will be the largest category of specialty drug approvals in the near future. Specialty drugs for cholesterol may also have a significant impact, given that the market has not had this type of drug for such a prevalent disease state before."
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A study last year showed that although specialty drugs account for less than 1 percent of prescriptions, they account for roughly a quarter of prescription drug costs. As employers have struggled to contain rising drug costs, many have shifted a greater share of the cost burden onto employees.
While the cost of name-brand drugs has increased, it is the dramatic hike in the cost of some generic drugs that have caught consumers the most off guard. Exponential price increases for crucial medications, including antibiotics and asthma pills, spurred members of Congress to request a federal investigation into the cause. Not only are the increases hitting consumers hard, but they're driving up the cost of Medicaid and Medicare.
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