Generic Drugs a Factor in Spending Slowdown
From 1993 to 2003, spending on medications was a major factor in unprecedented growth in mental health spending. An analysis of current trends shows that past high growth in spending on psychiatric drugs has slowed substantially—from an average annual growth rate of nearly 19% in 1997–2001 to 6% in 2001–2008. The increased entry of generic medications, which constituted 70% of all psychiatric prescriptions by 2008, was a key contributor to the slowdown in spending.