Saving Money

Biotechnology innovations not only can help save and improve lives, but also can provide enormous value to society over time and substantial savings in overall treatment or other areas of healthcare spending.

Studies show that:

  • Every additional $1 spent on congestive heart failure medicine for adherent patients saves eight times that much in other healthcare services, with similar trends for patients with diabetes, hypertension and high cholesterol1
  • The creation of Medicare prescription drug coverage for seniors has resulted in annual hospitalization savings of an estimated $1.5 billion per year, and2
  • The 22 percent reduction in cancer death rates3 since 1991, due in part to new medicines, has generated nearly $2 trillion in societal benefit.4

Three quarters of insurance premium growth is driven by increasing payments to hospitals and doctors.5 Medication and prevention are the two things that stand to lower these costs by keeping people out of the hospital in the first place. We need to start thinking in terms of how medicine and medical innovation help keep people healthier and save money in the long term.

Reducing Hospitalization

Biotechnology helps us save in very obvious ways by eliminating or reducing hospitalizations and long-term care costs. For example, in 2008, drugs prevented 40,000 cholesterol-related deaths and 82,000 hospitalizations, saving more than $5 billion on hospital costs alone.6 The cure for Hepatitis C can ultimately help save billions in reduced hospital costs and the need for liver transplants.7

Increasing Human Capital

Medical innovation allows people to be healthier and more productive. With treatments and medicines, many individuals can continue to work and be productive in society.

This not only allows for quality time spent with family, but economic value for the nation at large.

The National Cancer Institute projects that the human capital losses to cancer by 2020 will total $147.6 billion.8 Reducing cancer deaths just 10% would help save more than $4 trillion in overall value to society during the lifespans of Americans living today.9 That's why advances in biotechnology matter to each and every one of us.

A Fight That's Worth the Cost

Consider that if just one new Alzheimer's treatment could delay the onset of the disease by 5 years, it would lead to over $367 billion in healthcare savings by 2050.10

The healthcare system groans under the weight of currently incurable diseases like Alzheimer's. To address these challenges, we need to reduce the burden of these costly conditions on patients, on caregivers and on our overall healthcare system.

  9., on Investment for Medical Research (Rosenberg, LE).pdf

Source: J. M. McWilliams, A.M. Zaslavsky, and H. A. Huskamp, “Implementation of Medicare Part D and Nondrug Medical Spending for Elderly Adults With Limited Prior Drug Coverage,” Journal of the American Medical Association 306, no 4 (2011): 402–409