Prescription Drug Spending Trends and Projections

This technical report outlines the trends in prescription drug spending for commercially insured individuals from 2014 to 2024. It details that total spending more than doubled during this period, increasing from $694 to $1,626 per enrollee per year, which represents a 134% rise primarily driven by an 84% increase in average prescription prices and a 28% increase in the volume of prescriptions. The report highlights that branded and specialty drugs were significant contributors to this increase, with branded drugs accounting for 92% of the spending rise despite only making up 13% of the total volume in 2024. Furthermore, it presents projections indicating that prescription drug costs are expected to continue rising, potentially accounting for 32% of total spending by 2030 and 38% by 2035. The report also compares the growth of prescription drug spending to other medical service categories, emphasizing its rapid increase relative to hospital and physician services.