Prescription drug prices are on the rise, and patients will be forced to pay higher prices for the medications they need. Find out how you can navigate – and potentially avoid – cost inflation.

Over the past several years, there has been a dramatic uptick in spending on prescription medications. This essential industry has seen a huge increase in costs – one that has outpaced inflation – and the effects can be crippling on society.

These price increases are caused by a variety of factors, including industry monopolies, the current state of public health, lack of government reform, and the lobbying power of pharmaceutical companies.

Find out who prescription drug price increases effect, what is causing the increase, and what needs to be done to ensure patients receive the medications they need at affordable prices.

The rise of drug prices

With inflation on the rise, prescription medicines fall victim to price increases. And while the prescription drug industry may no longer hold the title of fastest-growing commodity or service, the industry has experienced a 2.5% increase since the beginning of the pandemic. However, prescription drug prices are steadily outpacing wage increases, with hourly earnings increasing on average by only 28% since 2014 compared to the 35% cost increase for prescription medications.

The risks of rising drug costs

With prescription drug prices outpacing wages in the United States, many patients are being adversely affected. Americans are struggling to afford health care, specifically necessary medications. In fact, a Kaiser Family Foundation poll found that nearly 1 in 3 Americans reported not taking their meds as prescribed due to cost, either by not filling the prescription, taking over-the-counter drugs instead, or cutting pills in half or skipping doses entirely.

Many patients have the power to shield themselves from the dangers of prescription drug prices through their insurance, but inflation doesn’t just affect consumers. High drug prices impact the entire health care system as a whole, and as a result, patients can expect to see increases in the cost of copays, insurance premiums, and secondary insurance.

4 factors contributing to rising prescriptions drug costs

When inflation occurs in any industry, there are typically a variety of contributing factors. In the prescription drug industry there are several causes that led to rising drug prices in the United States, from supply and demand to political issues. But a few reasons stand out as the most prevalent.

• Monopolies

With a lack of diversity of medications in the marketplace, pharmaceutical brands have the power to price gouge and charge whatever they want for life-saving medications. Even if there are plenty of affordable options for treatment already available, many health issues may require more than one medication to be treated effectively.

This means that patients may need to mix and match a variety of medications – many of them perhaps unaffordable for the patient – at some point during their treatment.

Monopolies in any industry can be a problem, but in the field of essential prescription drugs, unregulated monopolies can be disastrous.

• State of public health

In a post-pandemic world, the health care industry is experiencing strain at every turn. Patients are under more pressure to be vigilant about their health care needs, and prescription drugs are no place to cut costs.

One force behind high prescription drug costs is the view that medication is not a luxury, it’s a necessity. So even in times of economic downturn, patients are not able to tighten their budgets when it comes to their life-saving medications. This essentially gives pharmaceutical companies the freedom to name their price.

• Lack of government reform

The growing health care crisis in the U.S. is due in large part to the high cost of some prescription drugs, as well as the lack of government regulation of Big Pharma. The United States currently has no regulatory process over prescription drug prices, which puts U.S. citizens at risk.

Due to lengthy patent protections that further discourage healthy market competition, a complicated process of drug approval from the Food and Drug Administration (FDA), and the lack of value-based pricing, prescription drug costs in the U.S. are significantly higher than those in other developed countries.

Annually, Americans spend on average $1,126 per capita on prescription medications. This is more than double the average spent each year by other countries, where the average citizen spends an estimated $552.

• Big Pharma

As the costs of prescription drugs rise, Big Pharma reaps the benefits in the form of big profit. Often, those profits are used to lobby the United States government, causing a large barrier on the road to health care reform.

In 2018, pharmaceutical companies and trade organizations spent roughly $220 million in lobbying the U.S. government. As independent pharmaceutical companies continue to grow their profits at the expense of U.S. citizens, the cycle continues.

With these contributing factors and more, the cost of prescription medication is likely to continue rising at a faster rate than patients can keep up with.

You are not alone!

Until real reform happens in the U.S., pharmaceutical companies hold the power to charge astronomical prices for prescription drugs. The good news is, there are resources that can help patients locate the best prices. If you are feeling the effects of rising drug costs, talk to your doctor about alternative treatments, generics, and the best course of action to help ease the strain.

Find the most affordable options with ModRN Health

Navigating the world of high-priced prescription drugs can be difficult, but ModRN Health helps make getting your meds easier and more affordable. ModRN Health gives you the power to easily compare medication costs from providers near you, so you can find the medications you need at the best prices available.

Find out more about how ModRN Health can help by clicking HERE and enjoy access to the best and most affordable treatment options. ModRN Health also offers SMS and email prescription reminders and up-to-date information to help you manage your health.