It’s Not Your Imagination: Americans Are Spending More Than Ever On Prescription Drugs

Americans spent a record $98 billion out of pocket for prescription drugs in 2024, according to research from the health data analytics firm IQVIA and reported by Nasdaq.com.

Over the past five years, out-of-pocket costs grew 25%. But it could have been worse.

IQVIA’s research found a growing number of prescription drugs now cost $0 at the cash register. Yet, we are spending more overall because we are using more prescription drugs and medications simply cost more, particularly for cancer and weight loss.

Overall, 93% of prescription drugs cost consumers $19.99 or less out of pocket. Generic drugs were significantly cheaper than brand-name drugs, at $6.95 per prescription, compared to $28.69. (Tip: Ask whether a generic is available.)

The federal government is trying to rein in costs. President Joe Biden capped insulin prices for Medicare beneficiaries at $35 per month and gave Medicare the power to negotiate drug prices. President Donald Trump signed an executive order seeking to build on the drug negotiation program and encouraging the production of lower-cost prescription drugs.

Yet as Nasdaq.com points out: Relief couldn’t come fast enough. More than 60% of adults take at least one prescription medication. According to a Kaiser Family Foundation survey, about 3 in 10 respondents who take prescription drugs said they have difficulty affording them. And many simply don’t fill a prescription because they can’t afford it, or they skip or halve doses.

What about you? Have you or a loved one skipped filling a prescription because of cost? Share your story with Voices for Affordable Health.

###