Table 1. Expenditures for Prescription Drugs,1 by Source of Funds: Selected Years 1960-94.
| Source of Funds | 1962 | 1967 | 1972 | 1977 | 1982 | 1987 | 1992 | 1993 | 1994 |
|---|---|---|---|---|---|---|---|---|---|
| Amount in Billions | |||||||||
| Prescription Drugs | $3.0 | $4.2 | $6.3 | $9.2 | $15.0 | $26.5 | $46.6 | $49.4 | $51.9 |
| Average Annual Growth From Previous Year (in Percent) | 7 | 8 | 8 | 10 | 12 | 12 | 6 | 5 | |
| Out-of-Pocket Payments | 2.9 | 3.7 | 5.0 | 6.8 | 9.3 | 14.2 | 20.4 | 21.2 | 22.0 |
| Third-Party Payments | 0.1 | 0.5 | 1.3 | 2.4 | 5.7 | 12.3 | 26.2 | 28.2 | 30.0 |
| PHI | 0.0 | 0.2 | 0.6 | 1.3 | 3.7 | 8.1 | 18.0 | 19.1 | 20.0 |
| Medicaid | — | 0.2 | 0.6 | 1.0 | 1.7 | 3.4 | 6.7 | 7.7 | 8.4 |
| General Assistance | 0.0 | 0.0 | 0.0 | 0.1 | 0.2 | 0.5 | 0.9 | 0.9 | 1.0 |
| Other Government | 0.0 | 0.0 | 0.0 | 0.1 | 0.2 | 0.3 | 0.5 | 0.6 | 0.6 |
| Percentage Distribution by Source of Funds Within Each Category | |||||||||
| Prescription Drugs | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| Out-of-Pocket Payments | 95 | 88 | 80 | 73 | 62 | 54 | 44 | 43 | 42 |
| Third-Party Payments | 2 | 11 | 20 | 27 | 38 | 46 | 56 | 57 | 58 |
| PHI | 1 | 6 | 10 | 14 | 25 | 30 | 39 | 39 | 38 |
| Medicaid | — | 5 | 9 | 11 | 11 | 13 | 14 | 16 | 16 |
| General Assistance | 0 | 0 | 1 | 1 | 1 | 2 | 2 | 2 | 2 |
| Other Government | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
1
This class of expenditure is limited to spending for products purchased in retail outlets. The value of drugs and other products provided by hospitals, nursing homes, or other health professionals is implicit in estimates of spending.
NOTES: PHI is private health care insurance. Numbers and percentages may not add to totals because of rounding. 0.0 denotes less than $50 million.
SOURCE: Health Care Financing Administration, Office of the Actuary: Data from the Office of National Health Statistics.