If you've ever wondered why there are so many advertisements for Humira and Enbrel, two rheumatoid arthritis drugs, it's because pharmaceutical companies charge an enormous amount for them.
The same is true for drugs that cure hepatitis C, which are also some of the most expensive drugs available in terms of 30-day prescriptions. No surprise, they are also highly profitable.
Very expensive, specialty drugs are taking up a larger proportion of the total spend on medicines in the United States, according to a new study from the University of North Carolina. U.S. pharmaceutical companies appear to be relying on rare drugs that treat just a few people to boost profits.
Prices for specialty drugs have tripled since 2004, researchers found. Specialty drugs accounted for just 11 percent of spending on prescriptions in 2003, but comprised more than 43 percent of prescription spending by commercial health plans in 2014.
"There's a story here of very expensive drugs used by relatively small groups of patients for conditions for which there are few options," said Stacie Dusetzina, an assistant professor at the UNC Eshelman School of Pharmacy.
Outside the Boardroom
File - In this March 5, 2013 file photo, protesters march on the Texas capitol, in Austin, Texas, demanding that lawmakers expand Medicaid to include an additional 1.5 million poor people. The federal government has approved Texas' request for a temporary extension of a $3.1 billion annual Medicaid waiver — despite the Republican-controlled Legislature's staunch opposition to the White House's signature health care law. (AP Photo/Eric Gay, File)
Wealthy get more health care than other Americans
Leverage your severance package options Get information on non-compete clauses and benefits like your health insurance and retirement package before you sign. And ask your former company if they have resources to help you find a new job.
Non-competes stymie workers and economy
Oil and gas workers don't care much about work-life balance Workers in the industry were satisfied with their schedules, even though they typically work long hours. Work-life balance was only the fourth most important value to workers, according to the survey.
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FILE - In this Tuesday, May 19, 2015, file photo, Valeant Pharmaceuticals CEO J. Michael Pearson poses at the company's annual general meeting in Montreal. Valeant Pharmaceuticals asked its CEO to cooperate with a Senate investigation into drug pricing after he failed to appear for a deposition. The Senate Special Committee on Aging said on April 6, 2016, that it planned to start legal proceedings against Pearson, who is leaving Valeant after months of turmoil for the drugmaker. Pearson is still under subpoena to appear before the committee for an April 27 hearing. (Ryan Remiorz/The Canadian Press via AP, File) MANDATORY CREDIT
A few drugs make up much of the cost in healthcare
OFS Energy Fund , laying off 150 oil field employees in Texas, Louisiana and Oklahoma
Capital losses keep mounting in oil patch
The number of specialty drug prescriptions have also tripled between 2003 and 2014, from 0.6 percent of all prescriptions to 1.8 percent.
Humira ($3,890), Enbrel ($3,674) and the new hepatitis C drug, Sovaldi ($28,083), were the top three prescription drugs contributing to rising commercial health plan spending in 2014.
"Treatments for diabetes (Lantus SoloSTAR, Humalog, Victoza and Januvia), high cholesterol (Crestor and atorvastatin calcium), pain (Celebrex and OxyContin) and attention deficit hyperactivity disorder (Vyvanse and methylphenidate hydrochloride) also contributed to high spending, primarily because of the high number of prescriptions for them," the researchers reported.
The pharmaceutical industry is one of the largest in the world, but developing, marketing and selling medicines for a profit is a challenge. As the patents roll off for many commonly used drugs, the companies are relying on new specialty drugs to generate profits.
Some drug companies have sought to take advantage of those with rare diseases by boosting the prices for the cures and treatments, but have attracted widespread condemnation.
Skyrocketing drug prices, though, take a toll on health plans, particularly for small businesses, by driving up treatment costs and therefore premiums. Californians are considering a proposition that would force state health programs to pay no more than what the federal Department of Veterans Affairs pays for the same drugs.
Ultimately, Americans will need to decide if they think pharmaceutical companies should behave like all other for-profit businesses, and make as much money as they can, or should government limit their profits to ensure drugs are affordable and don't burden the larger economy.
Most other countries have decided for the latter, placing the health of the population above the companies' need to generate out-sized profits for shareholders.
The same is true for drugs that cure hepatitis C, which are also some of the most expensive drugs available in terms of 30-day prescriptions. No surprise, they are also highly profitable.
Very expensive, specialty drugs are taking up a larger proportion of the total spend on medicines in the United States, according to a new study from the University of North Carolina. U.S. pharmaceutical companies appear to be relying on rare drugs that treat just a few people to boost profits.
Prices for specialty drugs have tripled since 2004, researchers found. Specialty drugs accounted for just 11 percent of spending on prescriptions in 2003, but comprised more than 43 percent of prescription spending by commercial health plans in 2014.
"There's a story here of very expensive drugs used by relatively small groups of patients for conditions for which there are few options," said Stacie Dusetzina, an assistant professor at the UNC Eshelman School of Pharmacy.
Outside the Boardroom
File - In this March 5, 2013 file photo, protesters march on the Texas capitol, in Austin, Texas, demanding that lawmakers expand Medicaid to include an additional 1.5 million poor people. The federal government has approved Texas' request for a temporary extension of a $3.1 billion annual Medicaid waiver — despite the Republican-controlled Legislature's staunch opposition to the White House's signature health care law. (AP Photo/Eric Gay, File)
Wealthy get more health care than other Americans
Leverage your severance package options Get information on non-compete clauses and benefits like your health insurance and retirement package before you sign. And ask your former company if they have resources to help you find a new job.
Non-competes stymie workers and economy
Oil and gas workers don't care much about work-life balance Workers in the industry were satisfied with their schedules, even though they typically work long hours. Work-life balance was only the fourth most important value to workers, according to the survey.
Mexico lacks workforce for energy reforms
FILE - In this Tuesday, May 19, 2015, file photo, Valeant Pharmaceuticals CEO J. Michael Pearson poses at the company's annual general meeting in Montreal. Valeant Pharmaceuticals asked its CEO to cooperate with a Senate investigation into drug pricing after he failed to appear for a deposition. The Senate Special Committee on Aging said on April 6, 2016, that it planned to start legal proceedings against Pearson, who is leaving Valeant after months of turmoil for the drugmaker. Pearson is still under subpoena to appear before the committee for an April 27 hearing. (Ryan Remiorz/The Canadian Press via AP, File) MANDATORY CREDIT
A few drugs make up much of the cost in healthcare
OFS Energy Fund , laying off 150 oil field employees in Texas, Louisiana and Oklahoma
Capital losses keep mounting in oil patch
The number of specialty drug prescriptions have also tripled between 2003 and 2014, from 0.6 percent of all prescriptions to 1.8 percent.
Humira ($3,890), Enbrel ($3,674) and the new hepatitis C drug, Sovaldi ($28,083), were the top three prescription drugs contributing to rising commercial health plan spending in 2014.
"Treatments for diabetes (Lantus SoloSTAR, Humalog, Victoza and Januvia), high cholesterol (Crestor and atorvastatin calcium), pain (Celebrex and OxyContin) and attention deficit hyperactivity disorder (Vyvanse and methylphenidate hydrochloride) also contributed to high spending, primarily because of the high number of prescriptions for them," the researchers reported.
The pharmaceutical industry is one of the largest in the world, but developing, marketing and selling medicines for a profit is a challenge. As the patents roll off for many commonly used drugs, the companies are relying on new specialty drugs to generate profits.
Some drug companies have sought to take advantage of those with rare diseases by boosting the prices for the cures and treatments, but have attracted widespread condemnation.
Skyrocketing drug prices, though, take a toll on health plans, particularly for small businesses, by driving up treatment costs and therefore premiums. Californians are considering a proposition that would force state health programs to pay no more than what the federal Department of Veterans Affairs pays for the same drugs.
Ultimately, Americans will need to decide if they think pharmaceutical companies should behave like all other for-profit businesses, and make as much money as they can, or should government limit their profits to ensure drugs are affordable and don't burden the larger economy.
Most other countries have decided for the latter, placing the health of the population above the companies' need to generate out-sized profits for shareholders.
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