Americans spending more on medications

US medicines real per capita spending grew by 0.5% in 2011, says a new report issued by the IMS Institute for Healthcare Informatics, part of IMS Health. More new medications have been launched over the last ten years than in any previous decade, the authors wrote. Transformative treatment options became available to over 20 million people in the USA last year, even though there were fewer doctors' visits and prescription usage. The report is titled The Use of Medicines in the United States: Review of 2011. The authors explained that spending on medications vary substantially across the country, as well as by age groups. There was a significant increase on prescription drug spending among patients aged from 19 to 25 years, partly because many could stay on their parents' health insurance. Prescription usage by seniors, those aged 65+ years, on the other hand, dropped. Overall drug expenditure did not increase by more because several medications for chronic diseases have become available in their generic, cheaper versions. In 2011, the healthcare system in the USA spent $320 billion on medications, a real per capita increase of 0.5%. (spending per person, taking into account inflation). Michael Kleinrock, director, Research Development, IMS Institute for Healthcare Informatics, said: "2011 was a remarkable year for the volume of drug breakthroughs that became available to millions of Americans. At the same time, some troubling trends that began in 2009 persisted with many patients appearing to ration their medical care. The implications of fewer doctor visits and lower drug utilization on patients' health have yet to play out and require further study." Below are some highlighted data from the report: Transformative Disease Treatments - in 2011, 34 NMEs (new molecular entities) were launched in the country, several of them representing major breakthroughs. This is the highest number in over ten years. There were several first-time therapies for various cancers, hepatitis C, cardiovascular diseases, and MS (multiple sclerosis). The number of drugs launched for rare diseases (orphan drugs) were the highest last year in over a decade. Healthcare and medications utilized less - medication usage per head in the USA dropped a little last year, as did doctors' office visits (4.7% fall), while emergency room admissions increased by 7.4%. In relation to other kinds of health care visits, ER visits are small in number. Seniors consumed fewer medications from retail outlets in 2011. Prescription usage from retail outlets dropped 1.1% last year (over 3% drop in ten US states). Seniors' prescription drug usage declined by 3.1% in 2011 - the largest fall was seen in drugs for treating high blood pressure. Prescription usage by young adults (19 to 25 years) rose by 2% in 2011; there was a notable increase in ADHD drugs and antidepressant medications. The authors added that prescription usage only rose in this age group. Patient payment for medications - Out-of-pocket spending among those with health insurance coverage fell by $1.8 billion in 2011, to $49 billion. Nearly three-quarters of all prescriptions had a copay of $10 maximum. Copays for branded drugs covered by commercial insurance plans averaged at $40. Seniors participating in Medicare Part D had the largest fall in out-of-pocket spending - $23.31 total average, a fall of $2.66 - the age group with the largest decline. Major therapy areas - usage and spending - five therapy areas accounted for almost one-third of total healthcare spending. The five areas are: 1. Mental health, especially psychoses or bipolar disorders. 2. Diabetes. 3. Dyslipidemia. 4. Asthma and COPD (chronic obstructive pulmonary disease). 5. Cancer. Each of these five areas increased more rapidly than the market did overall, partly due to new treatment options and their usage, and better diagnostic procedures. Spending on drugs - US total health system spending on medications totaled $320 billion last year, a 0.5% increase per capita (after taking into account inflation). Spending on brand named drugs rose by 2.2% on a nominal basis (not in real terms), and was affected by the impact of $14.9 billion lower spending on branded drugs which lost their patent exclusivity.