Economic Pressure Causes Consumers To Cut Back On Medicines

The Wall Street Journal reports that for the first time in more than a decade overall spending on prescription medicines decreased significantly.  According to the Journal:

“[D]ata from market researcher IMS Health and Wall Street analysts indicate that the rate of prescription growth has fallen steadily since early last year and in recent months has slipped in and out of negative territory.”

There are a number of factors leading to decreased drug spending.  The most important is that prescription medicine users are being asked to pay a higher percentage of their drug bill.  Insurers and employers are no longer absorbing the full cost of expensive medications.  In response, patients are cutting back.  The Journal notes:

“The burden on consumers has increased sharply. The average copay for a preferred drug on an insurance company's tiered system rose 67% to $25 in 2007 from $15 in 2000, according to the Kaiser Family Foundation. Out-of-pocket costs to cover family insurance premiums were $3,281 per employee last year, up nearly 84% from 2001.”

Proponents of the consumerism movement have long argued that consumers should be more aware of the cost of medical products and services.  They predicted that this would decrease spending and cause them to make better health decisions -- i.e.,  less expensive, higher quality care. 

It appears that 50% of this prediction was accurate.  Consumers are spending less on prescription medicines.    However, are they making better health decisions?  It appears that some may not be.  A 2008  Kaiser Family Foundation study indicates that 23% of respondents did not full a prescription because of cost concerns.  For patients with chronic conditions, skipping doses could lead to poor health outcomes and future hospitalizations. 

What may be needed is more education.  Physicians, health providers, drug firms and other industry players may be able to play a role in educating people about sources of low-cost health care, generic medications and drug assistance programs.  If left to their own devices, some seeking short-term financial relief may be in for long-term health and economic problems.  We should do everything in our power to prevent this.