US medicine spending shows rare decline in 2012

TRENTON, N.J. — Spending on prescription medicines in the United States fell for the first time in decades last year, slipping as cash-strapped consumers continued to cut back on use of health care services.

Patients also benefited from a surge of new, less-expensive generic versions of widely used drugs for chronic conditions like high cholesterol, according to a new report.

Total spending on medications fell 1 percent, to $325.8 billion last year from $329.2 billion in 2011.


Likewise, average spending per person on medicines fell by $33, to $898 last year, according to the report from the IMS Institute for Healthcare Informatics.

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‘‘That’s the first time IMS has ever measured a decline in the 58 years we’ve been monitoring drugs,’’ Michael Kleinrock, director of research development at the institute, said.

Kleinrock said that while total drug spending fell by just 1 percent, the decline was 3.5 percent after accounting for population growth and economic expansion.

Factors behind last year’s drop in drug spending include positive trends such as more use of cheap generic pills and flukes such as a fairly mild cold and flu season in early 2012.

But there also was a big negative: people rationing their own health care.


IMS found affordability of health care remains a big problem for many Americans.

Growing out-of-pocket costs have forced people to go without needed doctor visits, medicines, and other treatments.

For some, that was because they lost jobs or homes during the worst recession in decades.

But higher costs also are hitting many employed people who have health insurance.