Prescription medicine reaching Highest rate in 13 Years

In 2015, government actuaries project drug spending will reach $305 billion, and it will likely get even worse because of trends in the industry. Pharmaceutical companies recently have invested more in specialty medicines called biologics, which are complex, injected drugs rather than conventional medicines like pills. Though these specialty drugs offer promise of treatment for serious chronic diseases, some even offering cures, the list price can be difficult to afford.
PhRMA says the list prices take into account research costs for all drugs. The drug industry group points out that more than 800 medicines and vaccines are currently in development to treat cancer. In addition, specialty drugs for the treatment of high cholesterol, Alzheimer's disease and multiple sclerosis are in development. Few, however, will be approved for release, which is one of the factors that the pharmaceutical and biotechnology industries say influences prices: They represent not only the cost of the drug that has been manufactured, but those that will be, and the cost to cover promising research that ultimately could end in failed attempts.
But even the costs of generic medications are rising. From July 2013 to July 2014, the prices of more than 1,200 generic drugs increased by an average 448 %, according to the Centers for Medicare and Medicaid Services.