Rising Drug Prices Fuel OOP Costs and Insurer Payments

Drug list prices have more than doubled over a 7-year period, outpacing increases in income or general inflation, according to a study published in the Journal of the American Medical Assn. (JAMA). Despite rising manufacturer discounts and rebates, these price increases fueled large rises in patient out-of-pocket costs and insurer payments. R&D costs cannot explain the substantial increases in list prices of drugs already on the market.

Insurer payments for specialty drugs are rising at a much higher rate than payments for non-specialty medications, also increasing coinsurance costs. As use of these drugs increases, patients may face higher out-of-pocket spending per prescription as well as rising premiums.