Has the cost of living just gone up? Is buying a single pill at the local pharmacy just out of the question any more?
The truth is that the price of many prescription drugs has gone up considerably in recent years. While the cost of life-saving medicines has decreased, the amount we pay out-of-pocket for medicines that don’t cure anything has increased. For example, generic Viagra is now available for around $30 a month, which is a considerable increase from the cost of over $15 per month just a few years ago. It’s not just about one drug, either. Multiple prescription drug prices have increased by an average of 25% since 2010.
In fact, the cost of some medicines is so exorbitant that it’s forcing people to find alternatives. A survey by the American Association of Advertising Agencies (4A’s) found that 67% of consumers are likely to be influenced by drug price when purchasing a medicine, and that 62% are actively planning to research the prices of prescription medicines before they make a purchase. (Source: 4As)
This trend is especially frustrating for older adults. While they might benefit from the medicines, the cost can be prohibitive. According to the AARP, one third of adults aged 50 to 64 spent more than 10% of their household income on prescription drugs in 2016. For some seniors, this is more than the cost of their average apartment.
Why Has Drug Pricing Increased?
There are a number of reasons why drug pricing has increased in recent years. One reason is the increase of generic competition. Often times, when a pharmaceutical company patents a drug, it will offer financial incentives to the first company to develop a generic version. If a second company markets and sells a lower-priced version, the first company can file lawsuits, alleging that their patent has been violated. This is often the case with insulin products, where generics have virtually eliminated the cost difference between brands.
In addition, there have been several instances of manufacturers raising the price of older medicines without offering any kind of discount for seniors or retirees. This is why many people believe that prescription drugs are becoming less affordable as the years go by. (Source: AARP)
Another cause of the increase in medicine prices is the Affordable Care Act. As of January 2019, the Act has placed restrictions on how much insurance companies can charge for certain drugs. The restrictions don’t apply to general medical expenses, which include doctor’s visits, procedures and tests. While this might not seem like a lot, it can add up quickly if you’re already paying out-of-pocket for your medicine. (Source: US News)
The truth is, there aren’t any easy answers when it comes to affordable healthcare. The government needs to address this issue head-on, by creating a universal healthcare system that covers all pharmaceuticals, without exposing users to financial hardship from excessive out-of-pocket costs.
What Does This Mean For Future Drug Purchases?
If you’re already struggling to make ends meet because of the cost of prescription medicines, it might be time to re-evaluate your medication strategy. Fortunately, there are alternatives. Many people who are affected by drug pricing choose to avoid medications that are too expensive. This leads them to either seek healthcare without medication, or to adopt alternative medication strategies.
The bottom line is that while there are a number of pharmaceutical companies that benefit from the increased demand for their medicines, the rising cost of prescription drugs is becoming unsustainable. In order to keep your medications affordable, it might be best to consider alternative solutions.
If you’re interested in lowering the cost of your medications, you have options. You might want to reexamine your medication strategy, and try to find a cheaper alternative. If this isn’t possible, you might want to look into getting insurance that covers the cost of your medications. It’s important to note that this might require some lifestyle changes. For example, you might want to consider getting a part-time job, or going back to school. This might help your quality of life without breaking the bank.