Projected Spending on Psychotropic Medications 2013–2020

  • Dominic Hodgkin
  • Cindy Parks Thomas
  • Peggy L. O’Brien
  • Katharine Levit
  • John Richardson
  • Tami L. Mark
  • Kevin Malone
Original Article


Spending on psychotropic medications has grown rapidly in recent decades. Using national data on drug expenditures, patent expirations, future drug development and expert interviews, we project that spending will grow more slowly over the period 2012–2020. The average annual increase is projected to be just 3.0 % per year, continuing the steady deceleration in recent years. The main drivers of this expected deceleration include slower development of new drugs, upcoming patent expirations which will lower prices, and payers’ growing ability to manage utilization and promote generic use. The slowdown will relieve some cost pressures on payers, particularly Medicare and Medicaid.


Psychotropic medications Spending growth Generic drugs 


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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • Dominic Hodgkin
    • 1
  • Cindy Parks Thomas
    • 1
  • Peggy L. O’Brien
    • 2
  • Katharine Levit
    • 3
  • John Richardson
    • 4
  • Tami L. Mark
    • 3
  • Kevin Malone
    • 5
  1. 1.Heller School for Social Policy and ManagementBrandeis UniversityWalthamUSA
  2. 2.Behavioral Health and Quality ResearchTruven Health AnalyticsCambridgeUSA
  3. 3.Behavioral Health and Quality ResearchTruven Health AnalyticsBethesdaUSA
  4. 4.University of Michigan School of Public HealthAnn ArborUSA
  5. 5.Centers for Medicare & Medicaid ServicesBaltimoreUSA

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