And only through a clear understanding of the facts can that balance be achieved. What's driving up spending on pharmaceuticals is increased volume. More people are using more pharmaceuticals because these medications are effective against a wide number of conditions, and many seniors require several prescription drugs to maintain an active lifestyle. It is increased use, more than price increases, that is increasing total drug expenditures. At Pfizer, the price increases of our medicines have averaged at or below the rate of inflation for the past five years.
Medication costs versus health costs.
Although more pharmaceuticals are being prescribed leading to greater drug expenditures, the increased use of innovative medicines can lower overall health care costs. Take a recent study from Humana, for example. Humana patients had fewer hospital visits and associated medical costs. Today's patients can take a pill and stay on a job while their parents were relegated to lengthy stays in hospitals or at home. It is this very level of intense competition that produces better medicines, often at lower cost.