Prescription drug spending spikes 12 percent, reaching nearly $300 billion

Prescription drug spending in the United States rose 12 percent in 2014, reaching nearly $300 billion, the latest issue of the Journal of Managed Care and Specialty Pharmacy showed. That 12 percent figure is backed by a 2015 study by the Office of the Actuary at the Centers for Medicare and Medicaid Services, which claimed that the rise in prescription drug costs is one of the prime drivers of healthcare spending.

The recent spike in prescription drug spending has generated significant public outrage and calls for government intervention.

The 2014 drug spending increase is in stark contrast to the increase in 2013, which was only 2.4 percent. Prior to 2013, spending on prescription drugs had actually decreased year over year. The media has been quick to point out that $11.3 billion of the spending increase was attributed to hepatitis C drugs alone, said JMCP Editor-in-Chief Laura E. Happe.

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Managed care pharmacists have been anticipating this growth in drug spending, Happe said in a letter from the editor in the February issue.

"With prescription drug spending rapidly rising, the expertise of managed care pharmacy in managing the drug spend, while improving health outcomes, has never been more relevant," she said. "We must continue to study ways to reduce unnecessary drug costs without compromising clinical value. At the same time, we are challenged to measure the value of increased drug spending when it improves clinical outcomes."

[Also: CMS final rule brings down cost of prescription drugs, hopes to save $2.7 billion]

Spending has also risen since 2013 due to more people gaining health insurance through federal and state exchanges established by the Affordable Care Act, CMS said.

Despite the recent spending increases, the rates are below most years prior to passage of the ACA, according to CMS.

Twitter: @JELagasse