Cost Savings from Innovative Drugs
Newer drugs save seven times more in non-drug spending than they cost
- Savings from reduced hospital and nursing home admissions exceed cost of using newer drugs
- Prescription drugs can reduce the need for expensive surgeries and hospital stays
(Lichtenberg)
Newer drugs save nine times their estimated cost in value of increased workforce participation
- New drugs reduce lost work hours due to illness, hospitalization (Lichtenberg)
- Medicare ultimately saves $2.06 for every additional dollar it spends on drugs (Shang & Goldman)
Healthier 65+ population saves Medicare costs
- Healthier seniors reduce annual pre-beneficiary Medicare costs
- Health promotion and prevention strategies can pay off even more in the future
- Future elderly will be able to work and live independently longer
More than 3,700 new biotherapies in development
- Cancer: 800+
- Alzheimer’s: ~100
- Diabetes: 200+
- Cardiovascular: ~300