Trends in retail prices of specialty prescription drugs widely used by older Americans: 2017 year-end update
- Collection:
- Health Policy and Services Research
- Series Title(s):
- Rx price watch
- Author(s):
- Schondelmeyer, Stephen W., author Purvis, Leigh, author
- Contributor(s):
- AARP (Organization), issuing body. Public Policy Institute (AARP (Organization)), issuing body.
- Publication:
- Washington, DC : AARP Public Policy Institute, June 2019
- Language(s):
- English
- Format:
- Text
- Subject(s):
- Drug Costs -- trends Prescription Drugs -- economics United States
- Genre(s):
- Technical Report
- Abstract:
- Retail prices for widely used specialty prescription drugs increased substantially more than general inflation in every year from 2006 to 2017. Between 2016 and 2017, retail prices for 97 specialty prescription drugs widely used by older Americans, including Medicare beneficiaries, increased by an average of 7.0 percent. In contrast, the general inflation rate was 2.1 percent over the same period. Specialty drugs treat conditions that often affect older populations, such as cancer, rheumatoid arthritis, and multiple sclerosis. While there is no set definition for specialty drugs, the term generally includes drugs that are used to treat complex and chronic conditions; that require special administration and handling; or that require patient care management. Another notable characteristic is that they are among the most expensive drugs on the market, with prices that can reach hundreds of thousands of dollars per year. Increases in the retail price of specialty prescription drugs have a corresponding impact on the cost of drug therapy for the individual and for all other payers. In 2017, the average annual retail cost of prescription drug therapy for a single specialty drug, based on the market basket used in this study, was $78,781 per year. This average annual cost was almost $20,000 more than the median US household income ($60,336). The annual specialty drug cost was also more than three times the median income for Medicare beneficiaries ($26,200) and over four-and-a-half times higher than the average Social Security retirement benefit ($16,848). Notably, the average annual cost for one specialty medication used on a chronic basis would have been $29,843 in 2017--almost $50,000 lower--if the retail price changes for these products had been limited to general inflation between 2006 and 2017. If recent specialty drug price trends continue unabated, an increasing number of vulnerable Americans will be unable to afford necessary specialty medications. Such developments will lead to poorer health outcomes and higher health care costs in the future.
- Copyright:
- Reproduced with permission of the copyright holder. Further use of the material is subject to CC BY-NC-ND license. (More information)
- Extent:
- 1 online resource (1 PDF file (iv, 25 pages))
- Illustrations:
- Illustrations
- NLM Unique ID:
- 101769462 (See catalog record)
- Permanent Link:
- http://resource.nlm.nih.gov/101769462