Originally Posted by Sunset
Consumer Reports Magazine this month has an excellent article on a big driver of medical costs.
Which is the cost of medications.
It turns out even old medicines are being jacked up in price by the pharma companies, (example Valent) which is legal and the increases are huge to the point where retired people cannot afford it.
While there are always bad actors in every industry- Valent is a good example of a bad actor. Also, agree overall drug costs are increasing but the latest available Medicare data shows drug spend is 9.8% of overall health care spend. The over whelming percentage of annual health care spend is hospitals and physician care.
Percent of national health expenditures for prescription drugs: 9.8% (2014)
For those who like deeper dives- references attached.
FastStats - Health Expenditures
Table 94 (page 2 of 2). National health expenditures, average annual percent change, and percent distribution,
by type of expenditure: United States, selected years 1960–2014
[Data are compiled from various sources by the Centers for Medicare & Medicaid Services]