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How the Patent Cliff Is Shrinking U.S. Spending

Sunday - 5/12/2013, 10:10pm  ET

As the debate continues over what's causing health-care cost growth to slow -- Obamacare or the poor economy -- we're seeing another catalyst have a big impact: the patent cliff.

Drug spending fell for the first time in 55 years, but not because Americans are living healthier. Simply put, some high-profile drugs just got a lot cheaper.

This video discuses why the patent cliff, while a huge threat to the pharmaceutical industry, is a huge opportunity to decrease costs for one of the largest drivers of the national debt. Our health-care analyst takes a look at why generic-drug makers aren't the obvious home-run investment they would appear, despite strong industry tailwinds.

Obamacare will undoubtedly have far-reaching effects. The Motley Fool's new free report, "Everything You Need to Know About Obamacare," lets you know how your health insurance, your taxes, and your portfolio will be affected. Click here to read more.