Top 3 Things You’ll Learn
- Factors contributing to the increase in healthcare spending
- Estimated rise in prescription drug spending
- How self-funded employers can address high Rx costs
Have you checked the future forecast of healthcare spending? If not, you may be surprised by what lies ahead over the next decade. A report published by the U.S. Centers for Medicare and Medicaid Services (CMS) estimates that total U.S. spending on healthcare will escalate from $3.5 trillion in 2017 to $5.9 trillion by 2027 – an average of 5.5% per year.
U.S. spending on healthcare will escalate from $3.5T in 2017 to $5.9T by 2027, with Rx accounting for 9% of the total increase. #drugcosts
Here’s how the $1.3 trillion surge breaks down:
- Outpatient prescription drug spending will account for 9% of the total increase, annually increasing by 5.6%
- Spending on hospitals and professional services will account for most of the increase at nearly 59%
Various factors were considered in the predictions, including increases in income and employment rates, and the anticipated growth in the cost of medical goods and services.
The bottom line…
If your clients are looking for relief through innovative cost-containment methods, the CMS report should paint a sobering picture on the role prescription drugs will play in overall healthcare spending. These forecasts serve as an effective warning of the need to build a comprehensive, data-driven pharmacy benefit strategy to help your clients manage high-cost medications effectively over the coming years.