Silver Book Fact

Every $1 invested in newer medications saves $7 in other costs.

Lichtenberg, Frank R. Benefits and Costs of Newer Drugs: An update. National Bureau of Economic Research Working Paper. 2002; 8996. http://www.nber.org/papers/W8996

Reference

Title
Benefits and Costs of Newer Drugs: An update
Publication
National Bureau of Economic Research Working Paper
Publication Date
2002
Authors
Lichtenberg, Frank R
URL
Read Full Resource

Categories

  • Innovative Medical Research
  • Economic Value

Related Facts

  • Percent Growth in Number of People Reporting Chronic Diseases, 2003-2023: Current Path versus Alternative Path  
  • Private health insurance benefit spending is predicted to slow from a peak of 9.5% in 2001 to 4.7% in 2006, partially because of Medicare Part D.  
  • Costs That Can Be Avoided, 2003-2023  
  • Improvements in preventing and managing chronic disease could reduce future economic costs in the United States by 27% ($1.1 trillion) in 2023. $905 billion would come from gains in productivity;…  
  • Medicare could save $26 billion per year if currently healthy older people were able to remain fully independent over the course of a single year.