PhRMA responds to NIHCM Rx cost study

The Pharmaceutical Research and Manufacturers of America says totalprescription drug spending in the USA rose 14.7% last year, and not 18.8% as stated in a report issued this month by the National Institute for Health Care Management (Marketletter May 14).

Moreover, says PhRMA president Alan Holmer, quoting IMS Health data, only 3.9% of this total represents price rises, not 22% as stated by the NIHCM, and "the remaining 10.8% reflects the fact that more patients are getting more and better medicines," he added.

Mr Holmer comments that 12 of the 13 members of the NIHCM board of directors are chief executives of Blue Cross and Blue Shield managed care companies which, he says, are apparently looking for ways to cut costs by reducing benefits for patients. The PhRMA believes that, while cost-containment is important, prescription drugs have been proven to be the most cost-effective treatment for many illnesses and ailments, he adds.