Specialty drug costs are increasing

BALTIMORE, Jul 12, 2005 (United Press International via COMTEX) -- The increased use and cost of outpatient specialty pharmaceuticals is presenting a growing challenge to the healthcare industry and consumers, a study says.

Specialty pharmaceuticals are used to treat complex clinical conditions and often require injection or infusion.

The study, led by C. Daniel Mullins of Baltimore's University of Maryland School of Pharmacy, was funded by the Blue Cross and Blue Shield Foundation on Health Care.

Researchers evaluated medical and pharmaceutical claims from 10 BCBSd companies representing 17.8 million people.

The study showed annual spending for outpatient specialty pharmaceuticals rose 23 percent per member between 2002 and 2003. Within the 20 specialty pharmaceutical categories evaluated, there was a 20 percent increase in cost per patient and a 12.1 percent increase in the use of such drugs.

The 20 specialty pharmaceutical categories represented 16 percent of all pharmacy spending, with the 10 participating plans spending nearly $1 billion on the drugs during 2003.

Specialty pharmaceuticals are the fastest growing part of the pharmacy budget, with more than 350 new specialty drugs now in development.

The study appears in the July-August issue of the journal Health Affairs.