The Affordable Care Act Gives Drugmakers A Boost: CMS

What hath the Affordable Care Act wrought? For drugmakers, there looks to be a big boost in spending on prescription medicines. Projected spending is forecast to grow 5.2 percent next year, compared with 0.6 percent growth in 2013, thanks to greater use among Americans who are newly insured or those sign up for accessible insurance plans, according to the US Center for Medicare & Medicaid Services. Specifically, the projected growth in prescription drug spending would be 2.9 percent lower in 2014 without the oomph from healthcare reform, which suggests a clear benefit despite concerns expressed earlier this year by industry executives about the timing or extent to which the Affordable Care Act will improve their top and bottom lines. For instance, Eli Lilly ceo John Lechleiter recently maintained that “expanded access (to medicines) is a double-edged sword. Greater access is inherently good for our industry, in general. The question, however, is ‘what is the upside to this access?’ I don’t think any of us have been able to say that this will lift all boats. It may be good for company A or company B, but the verdict is still out.” Indeed, the CMS projections are, of course, looking at the pharmaceutical industry as a whole and some drugmakers will likely receive a bigger bump than others. But the agency forecast, nonetheless, suggests reason for optimism, given the overall potential for growth. The 2014 forecast, for instance, is also in stark contrast to an 0.8 ...
Source: Pharmalot - Category: Pharma Commentators Authors: Source Type: blogs