Diabetes Health in the News Podcast: Prescription Drug Costs Go Up 22% in Five Years

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IMS Health Holdings recently released data stating that U.S. spending on prescription medications will increase 22% over the next five years. By 2020, annual spending is thought to reach $400 billion dollars. This number takes rebates and other discounts into consideration, and when using wholesale prices, spending could reach up to $640 billion.

Two types of drugs are leading the way regarding expenses. In 2015, cancer drug spending reached over $39 billion, while treatments for autoimmune diseases like rheumatoid arthritis exceeded $30 billion. Additionally, the number of innovative medicines in research pipelines should ensure a variety of new drug launches in the next five years that will drive up costs.

These findings were published in Reuters on April 14, 2016.