Drug prices have risen almost 40% over the past decade

The cost of prescription drugs in the US has risen 37% since 2014, far outstripping the rate of inflation, according to data from the drug savings company. GoodRx.

Although price increases have slowed this year compared to the past decade, higher costs are increasing out-of-pocket costs for consumers. According to the data, the average American spends $16.26 out of pocket per prescription.

“When things go up — inevitably, they trickle down to consumers, especially those who are on a high-deductible plan or don’t have insurance or find themselves paying significantly out of pocket,” said GoodRx’s director of research. , Tori Marsh.

GoodRx said patients’ share of the cost continues to rise due to increases in copayments, coinsurance and deductibles. The company found that over the past 10 years, the average person’s deductible nearly doubled and co-payments are rising as most plans are adding another set of drugs with higher copays.

It’s a dynamic that GoodRx considers “big tip.” High medical costs are associated with reduced insurance coverage. Analyzing coverage for more than 3,700 Medicare Part D plans between 2010 and 2024, GoodRx found that the share of drugs covered fell 19% during that period.

“The impact is really threefold,” Marsh said. “Cost increases or price increases are a big part of it, but it’s really that with the combination of increased friction. … It’s difficult for people to, in some ways, get access to the drugs of them or have access to a pharmacy. And then on top of that, insurance isn’t what it used to be, it doesn’t cover as much as it used to.”

On average, Americans pay two to three times more for prescription drugs than consumers in other developed countries, according to the White House.

Drug costs have become a focus for President Joe Biden, especially as he approaches the 2024 election. The Biden administration has taken several measures to reduce out-of-pocket drug costs.

On Wednesday, the White House announced it would lower the prices of 64 prescription drugs for some Medicare beneficiaries as a result of inflation penalties on drugmakers.

The lower costs, effective through the third quarter, will benefit roughly 750,000 people who use the drug each year, some of whom could save as much as $4,593 a day, according to the release.

“Despite efforts by policymakers and industry leaders to break down affordability and access barriers, a patient’s actual cost continues to rise and is often a big surprise to them,” GoodRx interim CEO Scott Wagner said in a press release .

— CNBC’s Annika Kim Constantino contributed to this report.