CHANGING PRESCRIPTION DRUG SECTOR - NEW EXPENDITURE METHODOLOGIES

Estimating spending for prescription drugs has become increasingly dif ficult over the past 15 years as extensive changes have taken place wi thin the retail prescription drug industry. Expenditures for prescript ion drugs in retail outlets grew rapidly during the 1980s and early 19 90s. New retail outlets emerged and existing sites lost market share. New mechanisms for reimbursing drug purchases led to the flow of rebat es between manufacturers and insurers, bypassing retailers. These and other major industry changes required the development of new estimatin g methodologies for tracking prescription drug expenditures within the National Health Accounts (NHA).