Council for Tobacco Research
Ratio of Drugs to Total Health Spending Drops Per Capita Amount Was $30.58, or 12% of Total, in 1969, Vs. 14% in 1966, U.S. Finds American Druggist [St Reports and Explains Drug and Health Spending Figures]
Abstract
EMB
Fields
- Author
- Parke Davis
- Nationwide Mutual Insurance
- Nationwide Mutual Fire Insurance
- Nationwide Life Insurance
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- Master ID
- 11314459-4557
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- Named Person
- Amer Druggist
- Us Social Security Administration
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Document Images
Ratio of drugs to total
health spending drops
Per capita amount was $30.58, or 12% of
total, in 1969, vs. 14% in 1966, U.S. finds
The typical American spent a
total of S30.5i; on "drug, and drug
sundrie." in 19t,9-11.9'- of his
total ekpenl for all types of
health care services. «,hich
anlountecl to S2;(,.0-1.
Bacl, in l9f><t, drug spending
amounted to S_'5.3?, or 13.8~'~ of
total health care exl>enditures of
$1 83.12.
These figures have just been re-
ported by the Social Security Ad-
ministration. rm the basis of a spe-
TO KEEP FALSE EYELASHES properly
shaped, dust-free, and on view for in-
stant selection is the object of this new
dressing table accessory, offered by
Tacron Products, Freeport, N.Y. The
transparent blue container is made of
Bakelite polystyrene. In addition to
holding 8 upper and lower lashes, it
also stores applicators and adhesive.
i y,i , 1 1
20 Interpreting the Ne.v;
cial study conducted by Barbara S.
Cooper, of the Division of Health
Insurance Studies of the SSA's Of-
fice uf Research & Statistics.
Another way to grasp the signifi-
cance of the data is this : 19l per
capita expenditure of $30.58 for
drugs and drug sundries represents
a 20.8% increase over the 1969 fig-
ure. Un the other hancl, the S25(t.04
total for all health care spending last
year represents a 39.9% increase-
almost double that for drug,.
"llrugs and drug sundries" is the
gl ernnvent's language for the cate-
gory of products that consist,,
largely of inedicatiotls-prescril,-
tion and non-prescription.
dries" refers to first aid itenls, ther-
monleters, ancl a few other sick
room supplies.
In dollars, ph\sician's services
accounted for most of the per-capita
increase from 1900 to 1909. But in
percentage of total, hospitals and
nursing homes were the only cate-
gories that showed increases. The
follorl table gives tlle picture.
For botll N ears, it shows per-capita
dollar outlavs, by categorie-, ... and
the percentage of total represented
by each category :
196f oo+
To'o~
19!9 ~ioo!
TotaN
Hospital care .. 71.22 38,9 109.75 42.9
Physician services 44.60 24.4 58.04 22.7
Other prof.
services .....
20.15
11.0
24.92
9.7
Drugs ........ 25.32 13.8 30.58 11.9
Nursing home
care .......
7.08
3.9
11,75
4.6
Other health
services .....
14.75
8.0
21.01
8.2
Total ...... 183.12 100.0 256.04 100.0
By age: A srmlewhat different
picture emerges when the figures
are broken down into two age
groups-those under GS, and those
65 and over.
All per-capita figures are higher
for the ().;-plus group. For exanTl,le,
the average oldster spent $i9.-18
last year on drugs, compared with
only $2' 5.45 for the typical person
under 6;
.
How the dollar amounts and per-
centages of total vary for the two
age groups is shown in the following
tabulatir,ns :
Under 65
19h
Hospital care ... 59,90
Physician services 41.92
Other prof.
services ... . . 20.02
Drugs ......... 21.51
Two
37.8
26.4
12.6
13.6
D914
86.09
52.91
24.64
25.45
40.9
25.2
11.7
12.1
Nursing home
core ....... 1.12
Other health
services ..... 14.03
0.7
8.9
1.30
19.91
0.6
9.5
Tota 1...... 158.49 100.0 210.30 100. 0
65 And Over
I 9r:
TWO
`9^_
-_ -
Hospital care .. 181.54 42.9 335.28 48 4
Physician services 70.73 16.7 106.99 15.5
Other prof.
services ..... 21.40 5.1 27.61 4.0
Drugs ..... ,.. . 62.41 14.8 79.48 11.5
Nursing home
care ....... 65.05
15.4
111.40
16.1
Other health
services ..... 21.83
5.7
31.46
4.5
Total ...... 422.96 100.0 692.22 100.0
Private vs. public: All the firttr e-
thus far reported refer both to
money sl,ent from the inrlividual'~,
lmcket-prirate exl>enditurl
=anrl ptlblic sltending, mostly in-
volving :tl eclicaid. 11 eciicare, ancl
similar llrugranls.
\\ith respect to drugs, the incli-
vidual is still pretty much spendin:,,
his ou money, regardless of a;, e.
In 1909, pttblic funds accounted ftir
5?`:'r of per-capita drug exlTendi-
tures, comparecl with 3.3"~ in 19W
Fctr people 6: aald tW\ er. tlwe lQ(P
lmblic" ratio was ll.t`)"_; . . ,
against i.0(',e' three years earlier.
For people ttnder G;. public
spending accounted for only 3.1 r('
of the indiviclual's drug outlays la~,t
vear, compared with 2.01 ; in lui,i,
These low percentages reflect
primarily the fact that Meclicitrc
drtes not yet pay for out-of-husl)it;tl
drug expenditures for the elderly ...
while most Medicaid progrmll~,
while the\ du co.er drug.,, co~\er
thenl in limited fashion.
Contrasting with the drng data,
the governnlent report show. th:u
public funds accounted for 3' :~.t,r,
of total health expenditures for thc
average individual last year. Fur
people over (,5, the ratio wa 72.1
r.
For thuse under (,;, it was 23'
.
AMERICAN DRUGGIST Seplemlbe 7. 19'C

Package Power Plus...
New Formula
New Profit
And a"Peach" of a deal
pARKE--DAVIS j
I II I jnlPrpretuqq thr NEV, 21
AMERICAN DRUGGIST 0 September 7, 1970

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