US Rx bill to soar, due to prices, baby boomers

US spending on prescription medicines will double over the next fiveyears, with almost half the increase resulting from higher expenditures on cardiovascular and central nervous system treatments, according to forecasts from Merck-Medco, the nation's largest pharmacy benefit manager.

Annual spending growth of 15%-20% is expected for many of the prescription plans administered by Merck-Medco, and prescription spending among its clients grew 14% last year. The 65-79 age group showed the lowest rate of rise, and those aged 40-55 the highest, said the company, noting that while older people tend to have higher drug costs on a per-person basis, the rate of growth is highest for the baby-boomer generation.

Growth is also being fueled by high costs of patented new drugs, and the fact that many patients with chronic conditions are now taking a number of medications. However, Merck-Medco adds that patent expirations on branded drugs over the next three to five years will represent annual sales of $20 billion.