Prices Nearly Doubled On Top 25 Prescription Drugs Covered By Medicare

A new report from AARP finds the list prices for the top 25 prescription drugs covered by Medicare Part D have nearly doubled, on average, since they came to market.

The analysis was released as Medicare continues negotiations with Big Pharma on prescription drug costs. These negotiations were made possible by the 2022 Inflation Reduction Act. However, only certain drugs are eligible for negotiation under the law.

Brand-name drug prices have increased faster than the overall rate of inflation for decades. This can be particularly challenging for Medicare Part D enrollees, who take an average of four or five prescription drugs every month.

The AARP analysis considered 25 brand-name drugs with the highest total Medicare Part D spending in 2022, but had not yet been selected for Medicare drug price negotiations. The cost of these drugs increased by an average of 98%, or nearly double, since they came on the market. Overall, these top 25 drugs accounted for nearly $50 billion in total Medicare Part D spending in 2022.

While Medicare covers a portion of the cost, many patients cannot afford their copay. In fact, AARP investigators found 1 in 5 older adults are not filling a prescription or skipping doses to save money.

What about you? Have your Rx costs sky-rocketed? Share your story with Voices for Affordable Health.