Silver Book Fact

For each $1 spent on newer pharmaceuticals. $6.17 is saved in total health care spending. $4.44 of this savings is in hospital spending alone.

Lichtenberg F. 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 F
URL
Read Full Resource

Categories

  • Innovative Medical Research
  • Economic Value

Related Facts

  • New medicines, or “new chemical entities” accounted for 40% (0.8 years) of the two-year gain in life expectancy seen in 52 countries from 1986-2000.  
  • The average length of stay for older Americans has decreased by 6 days since 1980.  
  • Using newer drugs could lower overall health expenses by as much as $111 per person, per condition, for the general population, and $155 for Medicare beneficiaries.  
  • National health spending growth is projected to slow from 6.9% in 2005 to 6.8% in 2006, which marks the 4th consecutive year of a slowing trend.  
  • Avoidable Treatment Expenditures, 2023