Which factors have contributed most to the sharp increase in drug expenditures?
New drugs are expensive in the U.S.
For example, there are new pain relievers to treat severe arthritis, but they cost $150 a month, nearly 20 times more than previous pain relievers. A new biotech drug, Enbrel, to treat rheumatoid arthritis can cost $1,500 a month.
Which factors have contributed most to the sharp increase in drug expenditures? Discuss all possible factors. Are rising drug expenditures necessarily bad? And how to control drug costs?
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