Cost Savings from Innovative Drugs

Newer drugs save seven times more in non-drug spending than they cost

• Savings from reduced hospital and nursing home admissions exceed cost of using newer drugs
• Prescription drugs can reduce the need for expensive surgeries and hospital stays

(Lichtenberg)

Newer drugs save nine times their estimated cost in value of increased workforce participation

• New drugs reduce lost work hours due to illness, hospitalization (Lichtenberg)
• Medicare ultimately saves $2.06 for every additional dollar it spends on drugs (Shang & Goldman)

Healthier 65+ population saves Medicare costs

• Healthier seniors reduce annual pre-beneficiary Medicare costs
• Health promotion and prevention strategies can pay off even more in the future
• Future elderly will be able to work and live independently longer

More than 3,700 new biotherapies in development

• Cancer: 800+
• Alzheimer’s: ~100
• Diabetes: 200+
• Cardiovascular: ~300