Rx Drug Sales Hit by Slumping Economy

Sales of prescription drugs are growing at the slowest rate in more than a decade, reflecting the effects of a slowing economy and increased out-of-pocket costs to consumers. According to the healthcare research firm IMS Health, prescription volume for the first 5 months of this year grew by just 1.5%, the slowest growth rate since 1996. Volume actually declined in April by 0.2%, and in May by 0.1%. Forecasters see a further decline when June data become available later this month, resulting in negative growth for the entire second quarter, which hasn’t happened since 1994.

Rising out-of-pocket costs for prescription drugs coupled with increased costs of food and gasoline are causing consumers to curtail spending on medicines, economists say. The average insurance plan copay for a preferred drug has risen 67%, to $25, in the last 7 years. The average worker’s out-of-pocket cost for family health insurance premiums was $3,281 last year, up nearly 84% since 2001. One result, according to a Kaiser Family Foundation poll, is that consumers are cutting back or eliminating spending on prescription drugs. The poll shows that 23% of patients did not have a prescription filled last year because of cost, up from 20% in 2005, and 19% either split pills or skipped doses, up from 16% in 2005.