Changes in Prescription Drug List Prices, 2017-2023

This Issue Brief presents an analysis of changes in the list prices of prescription drugs from January 2022 to January 2023. It documents that over 4,200 drug products experienced price increases, with 46 percent of these increases exceeding the inflation rate. The average increase was reported at 15.2 percent, equating to approximately $590 per drug product. The brief highlights that the Inflation Reduction Act (IRA) mandates drug manufacturers to pay rebates to Medicare if prices for certain drugs rise faster than inflation. It also notes that most price changes occur in January or July, with significant variability in the extent of increases and decreases. The analysis compares these recent price changes to historical data and discusses the implications of the IRA provisions on drug pricing. The data source for this report is AnalySource, which provides detailed pricing information at the National Drug Code level, allowing for a comprehensive examination of market trends in prescription drug pricing.