Cost of Health Care

Prescription Medications

The fastest growing cost in healthcare is prescription medicine - and the most widely used health benefit is pharmacy. That's because we live in an age of scientific innovation that includes development of thousands of new drugs that can dramatically improve the lives of patients with cancer, asthma, stroke, migraines, heart disease, Alzheimer's, diabetes, depression, allergies, and more.

Drug Development Costs

Bringing a new drug to market is very expensive. It can take up to 15 years and cost as much as $800 million. At any given time, there are hundreds of drugs in development.

We spend more because there are simply more medications out there. And the pharmaceutical companies want us to help pay for the research and development it takes to bring them to market.

Generic Drugs

The drug manufacturers sell patented drugs at prices they control until the patent runs out and competitors are allowed to sell the same drugs under other names. These generic alternatives are generally a lot less expensive, but work just as well as the brand-name medicines.

Drug Advertising

Dramatic and costly advertising campaigns for prescription drugs encourage you to "ask your doctor" if the latest medications are right for you. This increases demand for the name-brand drug - even though it may not be better for you than the cheaper alternative. In fact, an over-the-counter medication can sometimes do the job at a fraction of the cost. Be sure to ask your doctor.

Control Your Prescription Costs

Instead of asking your doctor for the latest brand-name you saw on television, ask about generic alternatives to take the place of expensive drugs prescribed for you or your family members. Be an active consumer and shop for value, just as you would for other purchases.

• Shop around for the best drug prices. Drug prices can fluctuate between pharmacies by as much as $50 or more for a single prescription. But once you settle on a pharmacy, it's often good to have all your prescriptions filled there so the pharmacist knows everything you're taking.
• Read your prescription. Know what drug your doctor has prescribed and the dosage. Be certain your medicine bottle says the same thing on the initial filling and on refills. Some drug names are similar in spelling.
• Ask your doctor for free drug samples. The sales representatives often supply doctors with samples to hand out. This is especially helpful when you only need a small supply of the medication.
• Talk to your pharmacist about everything you're taking - medicines, herbals, and vitamins. Drug interactions can prevent your medications from working properly. That can mean more than just a waste of money. You could have a severe reaction or complications that would add to your healthcare costs.
• If you're taking multiple medications, review your drug list with your doctor at least every six months.
• Ask for a generic equivalent. Your doctor or pharmacist can tell you if a generic drug is available and appropriate for you.
• Take your medications as prescribed. Some people deal with high prescription costs by not filling their prescriptions or by skipping doses. But doing so can prolong an illness or cause other health problems - increasing the cost of treatment.
• Make lifestyle changes. Sometimes quitting smoking, losing weight, cutting out salt, stretching, or exercising can affect what ails you, so discuss possible lifestyle changes with your doctor. Healthy changes in your behavior can sometimes eliminate the need for certain medications.
• Empty out the medicine cabinet. Throw away old medicines and store your current drugs in a cool, dry, secure place where you'll remember to take them on schedule.

When it comes to increasing healthcare costs, you can exert control by educating yourself, making sure you take your medications correctly, communicating with your doctor and pharmacist, and making lifestyle changes that might improve your medical condition.

Healthcare expense breakdown

Learn more about how your healthcare dollar breaks down:

11 cents of every healthcare dollar is for healthcare administration

Watch Healthcare Video: Why is Healthcare so Expensive?