The boom in new drug development, combined with an aging and well-insured population, brings good news and bad news. The good news is that many groundbreaking drugs are available to help people live longer, healthier, more productive lives. Through drug therapy, millions are for the first time finding relief from conditions such as diabetes, depression, ulcers, high cholesterol, and chronic pain.
New drugs can help many patients avoid hospitalization or shorten their hospital stays.
The bad news is that pharmaceutical spending has been escalating at uncontrollable rates. Drug spending increased by 17 percent last year nationwide and at roughly the same rate across the board for the University's health care plans. Since 1992, drug spending in the U.S. has doubled, according to IMS America, a company that provides data on the pharmaceutical industry. That figure includes prescription drug coverage for 31,000 employees and retirees enrolled in U-M health plans. The projections are drawn from rate and 1999 utilization data.