Prescription drug spending on the decline

NEW YORK, Jun 20, 2005 (United Press International via COMTEX) -- Spending on prescription drugs is slowing, easing the burden of healthcare costs in the United States, the Christian Science Monitor reports.

The most recent data from the Centers for Medicare and Medicaid Services shows that prescription drug spending increased 10.7 percent in 2003, down from 14.9 percent in 2002. Independent analysts told the Monitor that the trend has continued.

The decline is attributed to a number of factors, including corporate and insurance company efforts to negotiate discounts with drug companies and drugstores. Consumers are also using generic drugs more frequently and states are passing laws to reduce their Medicaid and pension costs.

While prescription drug spending is going down, drug costs make up just over 10 percent of healthcare spending in the U.S.

"If the overall costs continue to go up, healthcare becomes less affordable, and more people will have less access to it," Richard Cauchi, health program director at the National Conference of State Legislatures, told the Monitor.