Affordable Care Act and Your Prescription Drug Costs

Since its enactment, the Affordable Care Act (ACA) has impacted the pharmaceutical industry, making it a challenge to find ways to control health care costs. Drug costs have increased and may continue to do so. Looking at past trends can help individuals and businesses better understand how to predict and manage future costs.

DRUG COSTS HAVE INCREASED SINCE ACA

According to IMS Health, in 199the US spent a paltry $40.3 Billion on prescription drugs compared to $329.2 Billion spent in 2013 (IMS Health Study: Spending Growth Returns for U.S. Medicines, April 25, 2014). Prescription drugs obviously make up more of our overall health care costs than they did in the past and thus warrant our attention.

Medications used to treat complicated conditions and illnesses like cancer not only cost more than other medications – they are also being used more. As advances in science make them more effective, doctors prescribe them more. Since the ACA, more people have access to these life-saving medications. While these changes are beneficial, they are also costly.

PRESCRIPTION COST AND SPENDING ARE LIKELY TO CONTINUE TO INCREASE

Traditional and specialty prescription spending both increased in 2014, 6.5% and 30.9% respectively. Specialty drug spending is projected to increase by over 20% each year through 2017, according to     READ MORE

Terry saves employers and employees money by identifying best-valued benefits, allowing employers to focus on managing business and giving employees a piece of mind. He helps businesses and individuals determine the right kinds of insurance they need, at a price that’s right for them. Provide compliance oversight for government legislation, including ERISA, COBRA, and PPACA. Access human resource assets to optimize business continuity, reviewing EOB’s to ensure correct billing and keeping up with technology-electronic enrollment.

Terry Denesha   |  HIP Insurance Advisor                                                

Compliance – Health Reform – Employee Benefits                                

Cell:  661.201-0571            Bakersfield, Ca  93306      

[email protected]    Lic.0F98081