Analysis: New Biologics Account for 70% of Increased Medicare Dermatology Drug Spending
Key Takeaways
Dermatology Medicare Part D spending rose from $768 million in 2013 to $2.95 billion in 2022, driven mostly by specialty drugs.
New biologics were responsible for more than 70% of the $2.2 billion spending increase.
Increased prescribing (not price inflation) was identified as the primary driver if increased costs for specialty medications.
Spending on dermatology-related drugs under Medicare Part D nearly quadrupled between 2013 and 2022, with specialty medications (including biologics) responsible for the vast majority of that increase, according to a new study.
Researchers analyzed 94.9 million drug claims from 24,731 dermatology clinicians and found that total annual spending grew from $768 million in 2013 to $2.95 billion in 2022, a 16.1% annual increase when adjusted for inflation.
“Specialty medications contributed 98.4% of this growth, increasing from 30.8% of all dermatology drug spending in 2013 to 80.9% in 2022, despite being only 2.9% of prescriptions,” the authors reported. The average price of a 30-day prescription for specialty medications rose from $3,738 to $5,872 over the same period—an annual increase of 5.1%. In contrast, nonspecialty drugs saw a 5.3% annual price decline, from $68 to $42.
Among the new therapies introduced since 2013, Otezla, Cosentyx, Taltz, Dupixent, Tremfya, Skyrizi, and Odomzo accounted for nearly 70% of the total spending growth. Increased prescribing (80.5%) rather than price hikes (19.5%)was the primary driver of the drug spending escalation. Older agents such as Humira, Enbrel, Stelara, and Erivedge saw inflation-adjusted prices rising 9.2% annually.
“While the price of the average dermatologic medication has increased rapidly, this primarily reflects increased prescribing of newly introduced specialty drugs,” the authors wrote in the study. “While these therapies expand treatment options, their rising share of costs highlights the need for policies that balance innovation, access, and affordability.”
Kong E, et al. Source: JAMA Dermatology. 2025. doi:10.1001/jamadermatol.2025.2142