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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]

Date: 07 Sep 1970
Length: 3 pages
11314481-11314483
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Author
Parke Davis
Nationwide Mutual Insurance
Nationwide Mutual Fire Insurance
Nationwide Life Insurance
Master ID
11314459-4557
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Named Person
Amer Druggist
Us Social Security Administration
Tacron Products
Bakelite
Cooper, B.S.
Type
SCIENTIFIC ARTICLE
ADVERTISEMENT
UCSF Legacy ID
vxg6aa00

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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 o„•u 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•
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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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