Are you feeling the pinch of rising prescription drug costs in the U.S.? You’re not alone. According to data from drug savings company GoodRx, the cost of prescription medications has increased by 37% since 2014, far outpacing the rate of inflation. This upward trend has led to higher out-of-pocket expenses for consumers, with the average American spending $16.26 per prescription.
But why are drug prices continuing to rise? GoodRx points to factors such as rising copays, coinsurances, and deductibles. Over the past decade, the average person’s deductible has nearly doubled, and copays are increasing as more plans add tiers of drugs with higher copays. This phenomenon, dubbed “the big pinch” by GoodRx, is further exacerbated by reduced insurance coverage. In fact, GoodRx found that the portion of medications covered by more than 3,700 Medicare Part D plans dropped 19% between 2010 and 2024.
The impact of these rising costs and decreased coverage is threefold, says GoodRx’s director of research Tori Marsh. Not only are consumers facing higher prices, but they are also encountering increased difficulty accessing their medications and are finding that their insurance coverage is not as comprehensive as it once was.
The Biden administration has recognized the burden that high prescription drug costs place on Americans and has taken steps to address the issue. This includes lowering prices on 64 prescription drugs for some Medicare beneficiaries as a result of inflation penalties on drugmakers. These price reductions, which will take effect during the third quarter, are expected to benefit around 750,000 people who use the drugs annually, potentially saving them up to $4,593 per day.
Despite these efforts to make prescription drugs more affordable, patients continue to be surprised by the increasing out-of-pocket costs they face. GoodRx’s interim CEO Scott Wagner emphasized this point in a recent news release, highlighting the ongoing challenges individuals encounter when trying to access necessary medications.
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