US Rx spending rise "mainly on volume"

Increased use of medicines, not rising prices, continues to be theprimary cause of higher US prescription drug spending, says a new study by Protocare Sciences (formerly Value Health Services), funded by the National Pharmaceutical Council and published in Health Affairs.

Increased volume outweighed price rises by more than four to one, said the comparison of spending in July 1995-June 1999 and July 1999-June 2000. Volume rises for the period averaged 15.6% a year, primarily due to more patients taking prescription drugs, more prescriptions per patient and, on average, prescriptions including more days of therapy.

The authors' broad definition of price included not only price inflation but also the effects of any shifts to newer drugs. Over the period, the price of a day's therapy rose 3.5% a year, including prices of new drugs. Volume and price together led to a 19.6% annual rise in aggregate spending per person from mid-1995 to mid-2000.