At the start of every new year, drug manufacturers adjust their price of medications. Prices are again on the rise in 2021 and continuing a trend of prescription drug prices rising faster than the rate of inflation. With these increases, consumers are oftentimes left wondering if and how their medication might be impacted due to the price hikes from manufacturers. RxSense, a leading healthcare technology company improving transparency and access to affordable medication, conducted an analysis of over 25,000 drugs to determine trends from the drug price increases set by manufacturers and found:
Key takeaways:
2,425 drugs saw a price change in January and February 2021
2,259 drugs saw an increase in price, at an average of 5%
166 drugs saw a decrease in price, at an average of 61%
1,898 brand-name drugs saw a price change
1,891 brand-name drugs saw an increase in price, at an average of 5%
7 brand-name drugs saw a decrease in price, at an average of 54%
527 generic drugs saw a price change
368 generic drugs saw an increase in price, at an average of 26%
159 generic drugs saw a decrease in price, at an average of 61%
SingleCare, the free prescription savings service, examined the drugs that have seen an increase to determine broader prescription pricing trends and drug-level insights to reveal how the average American can expect to be impacted by these changes.
Most commonly filled prescriptions did not see a price hike in 2021
SingleCare reviewed the top 500 most commonly filled drugs based on its overall claim volume in 2020 and found that 97% of them did not see a manufacturer price increase in January 2021 compared to January 2020. The drugs that did see an increase—17 drugs in total with 15 brand and two generic—saw an average price increase of 6% or average dollar increase of $0.24.
A vast majority of prescriptions sold—estimated at 90%—are generic, which are often significantly less expensive than the brand equivalent. In fact, of the top 500 most commonly filled drugs on SingleCare, 96% of them are generic and the average wholesale price is $3.45, which is $2.07 cheaper than the average brand drugs price within the top 500. Therefore, despite this year’s increases in manufacturer drug prices overall, the majority of Americans likely won’t see a significant change in the price, if at all, for their generic medications.
“When drug manufacturers set new prices in January and July, we usually expect that brand medications will see the brunt of the increases,” said Ramzi Yacoub, Pharm. D., chief pharmacy officer for SingleCare. “Since the prices of generic drugs typically remain relatively flat and with the FDA continuing to approve first-time generic drugs, consumers should continue to seek out generic options first. If you’re currently taking a brand-name drug and there’s a generic option available, it’s worth consulting your doctor or pharmacist to take advantage of these cost savings opportunities.”
The most expensive drug increases in 2021
It’s estimated that consumers in the U.S. spent $358 billion in prescription drug expenditures in 2020. SingleCare reviewed the drugs that saw the highest dollar increase year-over-year, based on the average wholesale price (AWP), which is the price set by the manufacturer.
https://www.singlecare.com/blog/prescription-drug-price-increases-january-2021/
Manufacturer drug price increases can impact your prescription costs—here’s how you can save to get the lowest price
While consumers do not pay the price set by the manufacturer, these increases can trickle down and impact the final cost of your prescription at the pharmacy counter. “If you’re concerned about an increase in cost for your medication,” Dr. Yacoub said, “the best way to find out if your drug price has changed is by calling your local pharmacy or insurance provider.”
Dr. Yacoub continued with his money-saving tips on how you can save at the pharmacy if you experience a drug price increase:
Go generic: When possible, work with your doctor to identify generic drug options. They are just as good as brand-name medications, and a fraction of the cost.
Check and compare prices before filling: Looking for the best price for your prescription near you? Prescription saving services, like SingleCare, allow you to enter your prescription and find local pharmacies near you with the lowest prices available. It’s always worth checking to see which pharmacy offers the lowest price for you to fill your prescription.
Extend your fills to three months: Fill prescriptions for 90 days whenever possible—not only can it cost less than filling 30 days at a time, but studies also show that filling three months at a time increases adherence to medications, which can decrease hospital admissions.
Use free coupons: SingleCare is a great resource as it can often save you big at the checkout: up to 80% off the cash price of a drug. Even if you have insurance, it’s always worth checking SingleCare as it can be cheaper than your copay. Another option for discounts on prescription medications is using manufacturer coupons or patient assistance programs. Many brand manufacturers will offer these and you can speak to your pharmacist or healthcare provider about these options.
Methodology
The analysis tracks the drugs that saw an average wholesale price (AWP) change from January 2021 and February 2021 compared to January 2020 and February 2020. Drugs were based on NDC’s for both RxSense and SingleCare claim volume in 2020 and Medi-Span pricing. Excluded were drugs that did not have a claim within this time period. The SingleCare data team reviewed this data as of Mar. 1, 2021.
Sign up
Log in
Español