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Joint Economic Committee Democrats Chairman - Senator Martin Heinrich (D-NM)

National Spending on Prescription Drugs Is Growing Rapidly

May 21, 2018

Weekly Economic Snapshot 5/21 - 5/25

Economic Facts for This Week

  • The Supplemental Nutrition Assistance Program (SNAP) is an investment in future generations. Access to SNAP in childhood improves health, education, and economic outcomes, and results in more self-sufficiency in adulthood.
  • The Kaiser Family Foundation reviewed the evidence on Medicaid expansion. They found that the expansion increased coverage and access to care, reduced uncompensated care for hospitals and clinics, and created no disincentive to work.
  • Nationally, 43 percent of households cannot afford the basic expenses associated with a middle-class lifestyle in their communities, according to a new study from United Way. State-level data is available on their website.
  • A new version of Trumpcare could result in even more uninsured than the original bill, once compounded with the Republican tax law.

Chart of the Week             

National spending on prescription drugs is rapidly growing in the United States, faster than any other type of health care spending. And on an international level, U.S. per capita drug spending far outpaces other countries. In 2015, the U.S. spent $1,011 per person on drugs, more than double what the U.K. spent. The Trump administration continues to make empty promises when it comes to reducing drug prices, recently proposing that the U.S. persuade other countries to raise their drug prices. But higher prices abroad will not result in lower prices here at home. Instead, Americans need a stronger approach that will crack down on excessive drug prices.

ICYMI

  • A JEC factsheet looks at the economic state of Asian American and Pacific Islanders in the United States, revealing that high-level stats often mask considerable variation.
  • When union membership expands, income inequality declines, according to new research.
  • A new paper looks at the impact of FinTech in mortgage markets, finding that it has helped improve efficiency and access.

Coming This Week

Permalink: https://www.jec.senate.gov/public/index.cfm/democrats/2018/5/weekly-economic-snapshot-5-21-5

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