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Health Insurance Plan Tools Are Easing Health Care Cost Increases
Center for Studying Health Systems Change report finds growth in health care spending slowing for fourth straight year;
Growth in prescription drug spending slows for the seventh straight year
(Washington, DC) – Growth in spending for prescription drugs continues to slow as more consumers take advantage of health insurance plans’ cost-containment strategies, a study released today by the Center for Studying Health Systems Change found.
The report said that in 2005, “drug price trends, as measured by the CPI, remained relatively stable at a low rate of growth. As in 2004, this likely reflects, in part, market responses to continuing growth in cost-sharing differences across the payment tiers for generic, preferred brand, and other brand drugs.”
“Health insurance premiums have reflected the slower growth in overall health care spending, with premiums rising at the lowest rate in years. Today’s news is the latest validation of the value of a new generation of cost-containment tools and techniques developed by health insurance plans,” said Karen Ignagni, President and CEO of America’s Health Insurance Plans.
“Just six years ago, less than a third of covered workers had access to a prescription drug plan with three or more tiers. In 2004, more than two-thirds had access to such a plan. This report is encouraging news for consumers who are benefiting from a continued slowing in the rate of growth of drug spending,” Ignagni said.
The Center for Studying Health Systems Change report echoes the findings of a 2006 PricewaterhouseCoopers study which stated that “widespread adoption of multi-tiered pharmaceutical benefits and generic drugs have helped slow the rate of increase in prescription drug spending.”
