This data was provided by GoodRx, a company dedicated to drug savings, as reported by CNBC.
Despite a slowdown in price hikes this year compared to the previous decade, the escalating costs are burdening consumers with increased out-of-pocket expenses. The average American is now shelling out $16.26 from their own pocket per prescription, as per the data. "When things increase … inevitably, they do trickle down to consumers, especially those who are in a high deductible plan or who don't have insurance or find themselves paying substantially out of pocket," explained Tori Marsh, the director of research at GoodRx.
The company further highlighted that the patients' share of the cost continues to swell due to rising copays, coinsurances, and deductibles. Over the past decade, the average person's deductible has almost doubled, and copays are on the rise as most plans introduce another tier of drugs with higher copays.
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GoodRx has termed this situation as "the big pinch," where high medication costs are paired with diminishing insurance coverage. An analysis of more than 3,700 Medicare Part D plans from 2010 to 2024 revealed that the portion of medications covered has declined by 19% during this period.
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"The impact is really kind of threefold," Marsh said. "Rising costs or rising prices are a big part of it, but it's really that with the combination of increased friction. … It's hard for people to, in some ways, access their medication or access a pharmacy. And then on top of that, insurance is not what it used to be. It's not covering as much as it used to."
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According to the White House, Americans are paying two to three times more for prescription drugs than consumers in other developed countries. This has led to the issue of drug costs becoming a focal point for President Joe Biden, especially as he gears up for the 2024 election. The Biden administration has initiated several measures to reduce out-of-pocket drug expenses.
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Recently, the White House announced a reduction in prices for 64 prescription drugs for some Medicare beneficiaries, a move triggered by inflation penalties on drug manufacturers. These lower costs, effective in the third quarter, will benefit approximately 750,000 people who use these drugs annually, with some potentially saving up to $4,593 per day, as per the release.
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"Despite efforts by policymakers and industry leaders to break down affordability and accessibility barriers, a patient's actual out-of-pocket cost continues to increase and is often a huge surprise to them," said Scott Wagner, the interim CEO of GoodRx, in a news release. This situation underscores the urgent need for more effective strategies to address the escalating costs of prescription drugs, a burden that continues to weigh heavily on the American public.
