June 7, 2001 Spending on Drugs Seen Doubling by '06 By REUTERS Spending on prescription drugs in the United States will double over the next five years as baby boomers seek early treatment of central nervous system and cardiovascular disorders, according to a report released yesterday by a unit of the drug maker Merck & Company. The unit, Merck-Medco, which oversees prescription drug allocations on behalf of insurers and managed care companies, said the highest rate of year-on-year growth in drug spending was among those between the ages of 40 and 55. The lowest rate of growth is among those over the age of 65. The report, based on the drug spending habits of 65 million insured people who are served by Merck-Medco, said drug spending increased 14 percent in 2000 and is expected to more than double by 2006. More than half the increase, it said, will be in drugs that treat diseases in two categories: cardiovascular conditions like hypertension and high cholesterol, and central nervous system disorders, including psychiatric and neurological drugs and medications for the treatment of pain and arthritis. Robert Epstein, Merck-Medco's chief medical officer, said the company did not expect drug spending to decrease significantly any time in the near future. "However, many tools can be deployed to manage the rate of growth - and at the same time improve the quality of care," he said. One main way companies can control drug costs is by promoting the use of generic drugs, the report said. Over the next three to five years, patents on drugs representing up to 11 percent of total national drug spending will expire, opening the way for generic alternatives, it said.
