Outpatient spending on prescription drugs increased to $191B in 2004, AHRQ finds…Costs for Individuals 65 and over Increase 130 Percent

May 23, 2007--Outpatient prescription drug spending increased from $72 billion in 1997 to $191 billion in 2004, according to a report recently released by the Agency for Healthcare Research and Quality, CQ HealthBeat reports. The report, which included data on individuals who live in the community and not institutions such as nursing homes, indicated that average annual prescription drug spending for individuals ages 65 and older increased by 130% to $1,914 in 2004 from $819 in 1997.

In addition, the report found that average annual out-of-pocket prescription drug spending for individuals ages 65 and older more than doubled to $1,027 in 2004 from $483 in 1997. The report also found that average annual prescription drug spending for individuals younger than age 65 increased by 140% to $838 in 2004 from $347 in 1997 and that average annual out-of-pocket spending for those individuals increased to $304 from $143 over the same period (CQ HealthBeat, 5/22).

Broadcast Coverage

In related news, American Public Media's "Marketplace" on Tuesday reported on factors that contribute to the cost of prescription drugs in the U.S. The segment includes comments from Chris Milne, associate director of the Tufts Center for the Study of Drug Development; Mark Ravera, an analyst at Strategic Pharma; Jim Greenwood, president and CEO of the Biotechnology Industry Organization; Jerry Avorn, an author and professor at Harvard Medical School; and Gail Shearer, director of health policy analysis at Consumers Union (Palmer, "Marketplace," American Public Media, 5/22).

Audio and a transcript of the segment are available online.