Prescription drug costs within the U.S. have risen 37% since 2014, far outpacing the speed of inflation, based on data from the drug savings company. GoodRx.
Although price increases have slowed this 12 months in comparison with the last decade, the upper costs are increasing consumers' out-of-pocket costs. The average American spends $16.26 out-of-pocket per prescription. based on the information.
“When costs go up, … that inevitably trickles down to consumers, especially those who have high-deductible plans, are uninsured or have to pay a large portion of the cost out of pocket,” says Tori Marsh, director of research at GoodRx.
GoodRx said patient share of costs continues to grow attributable to rising copays, co-payments and deductibles. The company noted that average deductibles have nearly doubled prior to now decade and co-payments are rising as most plans add one other drug tier with higher co-payments.
GoodRx calls this dynamic “the big burden.” High drug costs are related to lower insurance coverage. When analyzing coverage for greater than 3,700 Medicare Part D plans between 2010 and 2024, GoodRx found that the share of covered drugs dropped 19% during that point period.
“The impact is three-fold,” Marsh said. “Rising costs or rising prices play a big role, but that's combined with increasing friction. … It's difficult for people to get their medications or a pharmacy in some ways. And then insurance is also not what it used to be. It doesn't cover as much as it used to.”
On average, Americans pay two to thrice more for pharmaceuticals than consumers in other industrialized countries, based on the White House.
Drug costs have develop into a spotlight for President Joe Biden, especially ahead of the 2024 election. The Biden administration has taken several measures to cut back out-of-pocket costs for drugs.
On Wednesday, the White House announced that it could lower prices on 64 pharmaceuticals for some Medicare beneficiaries due to inflation penalties imposed on drug manufacturers.
The lower costs, which is able to take effect within the third quarter, will profit about 750,000 individuals who take the drugs annually. Some of them could save as much as $4,593 a day, based on the discharge.
“Despite efforts by policymakers and industry leaders to reduce barriers to affordability and accessibility, the true out-of-pocket costs a patient must pay continue to rise and often come as a complete surprise,” said Scott Wagner, interim CEO of GoodRx, in a press release.
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