“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 due to rising copays, co-payments and deductibles. The company noted that average deductibles have nearly doubled in the past decade and co-payments are rising as most plans add another drug tier with higher co-payments.
GoodRx calls this dynamic “the big burden.” High drug costs are associated with lower insurance coverage. When analyzing coverage for more than 3,700 Medicare Part D plans between 2010 and 2024, GoodRx found that the share of covered drugs dropped 19% during that time 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.”
According to the White House, Americans pay on average two to three times more for prescription drugs than consumers in other industrialized countries.
Drug costs have become a focus for President Joe Biden, especially ahead of the 2024 election. The Biden administration has taken several measures to reduce out-of-pocket costs for drugs.
On Wednesday, the White House announced that it would lower prices on 64 prescription drugs for some Medicare beneficiaries because of inflation penalties imposed on drug manufacturers.
The lower costs, which will take effect in the third quarter, will benefit approximately 750,000 people who take these drugs annually; some of them could save up to $4,593 per day, the press release said.
“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.
— CNBC’s Annika Kim Constantino contributed to this report.
