Question

Which factors have contributed most to the increase in drug expenditures? ( 300 words )

Answer 1

The factors that have contributed most to the increase in drug expenditures much of the increase in use and spending has resulted from the introduction of new brand-name drugs, which have replaced the existing, less costly treatments and some of which help in conditions for which treatment previously the treatment was not available. According to the NIHCM, which treats any drug introduced in 1992 or later as new; new drugs accounted for two-thirds of 1998 spending. The reason behind this is the fact that the development of a new drug involves research which is costly and the period of market exclusiveness of the patent of the drug is reduced remarkably by the time it passes through all the phases of the clinical trial and it gets approved.