The rise in pharmaceutical prices, especially for innovative therapies and cancer treatments, is pushing healthcare costs higher across Europe, putting immense pressure on national budgets. A new study highlights the trends in national public spending on medications and identifies the therapeutic areas that absorb most of these funds.
The study, carried out by a European research group, analyzed data from 15 EU member states and Norway, showing a continual increase in spending on medicines. According to the study’s findings, the main driver behind this growing expenditure is the rising cost of medications, rather than an increase in the volume of prescriptions.
One striking example comes from Austria, where the number of prescribed drugs has remained relatively stable over the past decade, yet the cost per prescription in out-patient care has increased by 78% since 2013. This trend is seen in several other European countries, confirming that higher prices are responsible for the increase in pharmaceutical spending.
Cancer drugs, in particular, represent a significant portion of the cost burden. In France, for instance, oncology treatments account for nearly 30% of out-patient pharmaceutical spending, with an annual growth rate of 11%. In hospitals, the dominance of cancer treatments is even more apparent, with 77% of in-patient drug spending going toward these therapies.
These rising costs are placing a heavy burden on taxpayers. Reimbursed prescription medicines, covered by national health insurers, form only part of the total healthcare expenditure, but their increasing costs are putting tremendous strain on national healthcare budgets. This is particularly concerning in countries that have implemented austerity measures in recent years, making it difficult for governments to maintain financial stability.
In Germany, for example, out-patient pharmaceutical spending has surged by 22% between 2019 and 2023, rising from €41 billion to €50 billion. This has raised concerns about the sustainability of the country’s health insurance system. Experts warn that if this trend continues, contributions to the compulsory health insurance system may have to increase, adding more financial pressure on citizens.
https://www.cpmrevenuegate.com/vt6hstxc?key=785582df3563a5011d6a42a72f53041e
A significant contributor to the rising costs is the introduction of novel therapies, which often come with a high price tag. These new treatments are beginning to consume a larger share of pharmaceutical budgets. In Finland, for example, there has been a noticeable shift toward more expensive, newer treatments, with patients increasingly opting for these over older, well-established medicines.
The decisions surrounding the reimbursement of new drugs are typically based on their relative effectiveness compared to existing treatments. However, there is often uncertainty around these new therapies, as they may not have extensive clinical evidence to back their effectiveness, despite their high cost. This uncertainty can lead to patients and doctors facing difficult choices, sometimes resulting in sub-optimal treatments.
Experts caution that the rush to adopt novel therapies could have unintended consequences. In some cases, treatments that were granted early access were later deemed less innovative than initially believed. For example, in France, nearly 21% of drugs granted early access were later found to lack significant innovation, raising concerns about the effectiveness and value of some of these expensive treatments.
https://www.cpmrevenuegate.com/vt6hstxc?key=785582df3563a5011d6a42a72f53041e
Another issue exacerbating the problem is the rising cost of orphan drugs, which are used to treat rare diseases affecting fewer than one in 2,000 people. In France, spending on orphan drugs has grown at an average annual rate of 20.5% between 2019 and 2022, a rate significantly higher than that of the broader pharmaceutical market. These high costs pose a significant challenge for national healthcare systems, as governments struggle to balance the need for innovative treatments with the financial sustainability of their healthcare budgets.
while the development of new and innovative therapies is essential for treating various diseases, the rising cost of these medications is a growing concern across Europe. National healthcare systems are facing increasing pressure to manage these costs while ensuring patients have access to effective treatments. The challenge will be finding a balance between innovation and affordability, ensuring that healthcare systems remain financially sustainable for the long term.
