Brand-name prescription drug prices have spiked since 2007
The price of brand-name prescription drugs went up by 60% between 2007 and 2018, after accounting for rebates and discounts, according to a new study in JAMA.
Why it matters: Drugmakers often argue that the uproar over drug prices is overblown, saying it focuses too much on list prices instead of the discounted prices insurance plans end up paying. But this study shows that those prices, too, are rising.
- And patients who are uninsured or haven't yet met their deductible are exposed to the list price of a drug, not its discounted rate.
By the numbers: The average Medicaid drug discount increased from 40% in 2007 to 76% in 2018, the study found.
- Discounts to other payers increased from 23% to 51%.
Go deeper: Drug price hikes are back for 2020