Why prescription drug prices are plunging
Summary
Prescription drug prices in the U.S. have fallen for the first time in over 60 years, dropping 3.1% in the past year with no monthly increases this year. This price drop coincides with government efforts, including Medicare negotiations from the Inflation Reduction Act and discounts promoted by President Trump's administration, as well as market competition and patent expirations that allow cheaper drugs to enter.Key Facts
- Prescription drug prices fell 0.8% in July 2024 and are down 3.1% from July 2023.
- This is the largest annual drop in prescription drug prices in more than six decades.
- President Trump's administration has promoted the TrumpRx website, which helps patients find discounted drug prices.
- Medicare began negotiating prices for some expensive drugs in January 2024, resulting in discounts up to 79% below list prices.
- Drugmakers Eli Lilly and Novo Nordisk made deals to lower prices and expand Medicare access to certain drugs.
- The price changes reported reflect what pharmacies receive from patients and insurers, not post-sale rebates.
- Market factors, like competition from generic drugs and lower prices for GLP-1 drugs, are also driving prices down.
- Despite the price drop, many Americans still worry about medication costs and some skip medicines due to price concerns.
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