Drug Spending Up 12% for Diabetes, Down 8.5% for Cholesterol

Spending on diabetes medications rose by 12% in 2007. Although more people are being treated for diabetes, most of the increase is because people with diabetes are switching to newer and more costly medications.

This is according to Medco Health Solutions, one of the largest managers of pharmacy benefits in the U.S., which released its 2008 Drug Trend Report earlier this week. The report is an analysis of the cost and use of prescription drugs that Medco fills for more than 20% of Americans.

The report showed that spending on diabetes medications rose by 12% in 2007. Although more people are being treated for diabetes, most of the increase is because people with diabetes are switching to newer and more costly medications.

Interestingly, the report also showed that spending growth for cholesterol-lowering drugs dropped by more than 8% in 2007. Although the number of people using these drugs continues to increase, many people are switching to the lower-cost generic versions of Pravachol and Zocor.

In a press release announcing the Drug Trend Report, Medco’s CEO said in reference to generic cholesterol medications, “Patients and our clients are reaping the benefits of generics as we enable them to hold down costs and make prescription drugs one of the few areas where spending trails overall health care inflation."