The financial saving platform, Goodrx Holdings (GDRX.US), revealed a concerning phenomenon in its latest report: over the past decade, prescription drug prices have soared nearly 40%, far beyond the inflation rate, causing about one-third of Americans to be unable to buy medicine at pharmacies.

GoodRx's prescription cost tracking data shows that from 2014 to 2024, both branded and generic drugs have seen a 37% increase in their prices. Meanwhile, the types of drugs covered by insurance plans are also decreasing. Another analysis by GoodRx indicates that from 2010 to 2024, the proportion of drugs covered by Medicare Part D, which is the insurance part of the Medicare plan that specifically covers prescription drug costs, has decreased by an average of 19%.

By reviewing first-quarter data from 3,700 federal Medicare Part D plans, GoodRx found that by 2024, these plans will only cover an average of 54% of prescription drugs, lower than 73% in 2010. To obtain insurance coverage, patients have to face multiple restrictions such as prior authorization. It is reported that by 2024, 50% of the drugs covered by federal Medicare Part D plans will be subject to some form of restriction, nearly twice the proportion in 2010.

This situation has brought enormous financial pressure to patients. Many people have to pay for their own medication, especially as the number of drugs covered by insurance plans decreases and the conditions for covered drugs become more stringent. This has led to an increase in out-of-pocket costs, non-adherence to medication, delayed treatment, deteriorating health conditions, and unfair healthcare opportunities.

According to GoodRx's data, 32% of Americans believe that inability to afford drugs is the main reason why they cannot get medication at pharmacies, while 20% blame drug shortages. Expensive drug costs force people to make difficult choices between health and other basic expenses. This survey is based on data collected from 3,000 Americans from January to May 2024.

In addition, the problem of drug shortages is becoming increasingly serious. According to GoodRx, 28% of Americans cannot access certain critical drugs, such as the weight loss drug Ozempic and the diabetes drug Zepbound, which are produced by Novo Nordisk A/S (NVO.US) and Eli Lilly and Co (LLY.US), respectively.

Tory Marsh, GoodRx's research director, pointed out in her published research that for most Americans, the affordability of drugs is not due to those expensive and rare drugs, but rather to the common drugs used to treat chronic diseases. The cost of these drugs is often not covered by insurance, causing economic pressure on patients.

As Americans bear more and more of the cost of prescription drugs, they have to face increasing copays, shared insurance and deductibles. GoodRx's data shows that over the past decade, the average deductible has nearly doubled, from $917 to $1644, while the inflation rate during the same period increased by only 32.5%.

Marsh emphasized that as insurance coverage becomes tighter, the cost burden is gradually shifted to consumers. GoodRx's data reveals this trend: about 54% of drugs are covered by insurance, but 50% of drugs have insurance restrictions, and 25% of Americans have at least one prescription drug that is not covered by insurance.

Marsh pointed out in her research that although policymakers and drug manufacturers have made efforts to deal with the rising drug prices, drug costs are still a heavy burden for many Americans. She mentioned that although legislation has attempted to limit the price of insulin and manufacturers have planned to provide discounts for expensive therapies, these measures have not led to a significant drop in overall drug costs.

US President Biden has given high attention to the issue of drug prices, especially as the election approaches. In a debate, Biden claimed that his government had lowered the price of prescription drugs and reduced the cost of insulin injections to $15. However, fact-checking shows that Biden actually set the upper limit of insulin costs under health insurance at $35 per month. Previously, Biden signed the American Rescue Plan Act and the Cut Inflation Act, which aimed to reduce prescription drug costs and health insurance premiums.

Despite the government's efforts, the high cost of prescription drugs remains a prominent problem in the United States. According to the White House, Americans pay on average two to three times as much for prescription drugs compared to consumers in other developed countries. The Biden administration recently announced that it will implement inflation penalties on 64 prescription drugs in the third quarter of this year to lower the cost for some American seniors who participate in federal medical insurance.

Marsh expressed a desire to find a solution in the interview. She believes that it is a systemic problem that involves many aspects such as pricing, insurance, and access to medical services. "This is the result of the combined effect of all factors," she concluded.

Overall, the soaring prices of pharmaceuticals and the shrinking coverage of insurance are having profound effects on the health and economic situation of the American people. This issue requires the joint efforts of policymakers, the medical industry, and all sectors of society to seek sustainable solutions.