Here’s a message from BIO about drug prices.
The latest health sector economic indicators from Altarum demonstrate that healthcare prices continue to grow slower than inflation—and prescription drug prices increased even slower.
The key finding: While overall Consumer Price Index (CPI) inflation was 7.7% in October 2022 (year over year), prescription drug price growth was 2.2%, after declining the previous year by -0.7% for October 2021.
Which health categories grew the fastest: dental care (5.4%), nursing home care (4.2%), and hospital services (3.5%), which were above the Health Care Price Index (2.9%).
Which health categories grew the slowest: physician services (0.3%) and prescription drugs (2.2%), which were below the Health Care Price Index and far below overall inflation.
Why it matters: Prescription drugs often take the blame for rising healthcare costs, but the economic indicators show time and again this isn’t the case.
With drug price controls taking effect next year—and a new Congress—it’s important to continue to shine a light on the truth about healthcare costs and find solutions to reduce patients’ costs without harming innovation.