Out-of-pocket drug spending hit $98B in 2024: report

[BumRushDaShow]

Source: Axios

4 hours ago


Americans spent $98 billion out of pocket on prescription drugs in 2024, marking a cumulative 25% increase over five years, according to an annual report from analytics firm IQVIA.

Why it matters: Lowering prescription drug costs remains a priority for both Democrats and Republicans.

The Biden administration led Congress in passing a landmark legislative package to negotiate select drug prices for seniors and redesign Medicare Part D. President Trump is continuing the focus, and recently signed an executive order aimed at further cutting drug prices.

What they found: Net spending on medicine rose 11.4% in 2024 to $487 billion. Prescription costs on average were flat compared with 2023, but there was greater use of medicines with significant clinical benefits, IQVIA said.

More than one-quarter of new prescriptions were not filled in 2024, mostly because they aren't covered by insurers.

Payer rejections may be driven by factors like prior authorization requirements or formulary decisions, but nearly half of those rejections are overcome either by the patient switching to a secondary insurer, paying cash, or adding a coupon, per IQVIA.

Looking ahead, total net spending on medications in the U.S. will exceed $600 billion by 2029, with obesity and oncology drugs driving growth, IQVIA estimates.

Zoom out: Prescription medicine use increased 1.7% last year, the report found.

Read more: https://www.axios.com/2025/05/05/out-of-pocket-drug-spending-prescription

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Link to IQVIA REPORT - Understanding the Use of Medicines in the U.S. 2025

[IbogaProject]

1. Priority?

I have seen nothing from the GOP but empty talk. And what I hate to say was basically publicity stunts from our side. Negotiating 10 medicare drugs, price caps on insulin for only Medicare. Sorry there has been little but talk on this issue. My governor here in NY has done much more, but it was a reshuffle. Now my scrips are very cheap but the co-pays went up on all visits, doctors, physical therapy, they even have a copay on phlebotomy now here.