Article: Study claims new drugs save health care dollars. (Breaking News).

OCT. 04, 2002 -- WASHINGTON DC -- A new study presented on Capitol Hill today claims that using newer medicines in the place of older medicines reduces overall health care spending--and that the savings are greatest among the Medicare population.

The study, "Benefits & Costs of Newer Drugs: An Update," conducted by Columbia University economist Frank R. Lichtenberg and released as a National Bureau of Economic Research Working Paper, examined the effect of drug age--years since FDA approval --on total medical expenditures and mortality.

Dr. Lichtenberg found that replacing older medicines with newer medicines reduced nondrug health expenditures more than ...

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