That was my thought, too, but I had to ask.
The healthcare stuff bounces around a lot so it depends on what and when. The annual Healthcare Expenditures report found for 2013 (the latest on the website for the Office of the Actuary at MCare) Pharm prices went up 2.5% compared to 0.5% the year before. Physicians and clinical services went up 3.8% (4.5%) largely related to sequester and other "artificial" happenings. Hospitals went up 4.3% (5.7%). So Pharm spending went did not grow at a rate higher than these other two. I would also point out that prescription meds account for only about
10% of all health expenditures according to Mcare. It is hard to suggest that increases less than increases in other areas (especially given the small relative percentage of the hit) means that drugs are eating up any savings. Also, I am a little tired of the non negotiation of prices. While MCare can't those putting together Part D plans can and do negotiate just like they do for their "regular" insured. Many studies of the early years of Part D showed the impact, which has disipated over the years since you can only wring out excesses for a certain amount of time before they are no longer there. So, while technically, they can't negotiate, this really means just for in-hospital people and the vast majority of medication is spent outpatient.Serious question: "I hear" could you be more specific?