Will capping drug prices drive down healthcare costs? — 5 key points

Many states are considering laws that would allow officials to impose limits on the prices of various medications. However, some experts argue capping drug costs will not lower healthcare costs, according to philly.com

Here are five key points on prescription drug costs.

1. Massachusetts lawmakers are considering a law allowing officials to set price limits on certain medications. The state would be the first in the nation to cap drug prices if the law is passed.

2. Despite popular belief, some experts claim drug prices do not raise healthcare costs. Americans will spend $382 million on prescription medicines in 2015, but this represents only 10.1 percent of total healthcare spending.  In 1960, the CMS reported prescription drug spending accounted for 10 percent of total healthcare spending.

3. New drugs do cost more than generic alternatives, but the prices reflect the rising costs of research. It costs approximately $2.6 billion to bring a new drug into the current market.

4. Additionally, the majority of healthcare spending is being used for treating chronic diseases such as diabetes, hypertension, heart disease and cancer. Nearly 84 percent of healthcare spending is used to treat chronic diseases.

5. Prescription drugs can save money on physician visits, hospital admissions and other interventions that may prove to be more mostly.

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