Trends in Retail Prices of Brand Name Prescription Drugs

This report is a technical analysis of the trends in retail prices of brand name prescription drugs widely used by older Americans from 2006 to 2024. It documents that brand name drug prices have historically increased faster than other consumer goods and services. However, in 2024, the average retail price for a sample of 253 brand name prescription drugs decreased by 1.4%, marking a significant change in the price trend. This decrease is primarily attributed to substantial price reductions in insulin and asthma inhaler products. The report also outlines that despite this decrease, the average annual cost for one brand name medication remains high at nearly $13,000, which poses affordability challenges for older Americans. The report emphasizes the need for comprehensive legislation to address the ongoing issues of high drug prices and their impact on health outcomes. It presents findings on price changes across various therapeutic categories and highlights the disparity between drug price increases and general inflation over the years.