Rx Price Watch Report: Brand Name Drug Prices Increase More than Twice as Fast as Inflation in 2018

The latest Rx Price Watch report by Leigh Purvis and Dr. Stephen W. Schondelmeyer finds that retail prices for widely used prescription drugs increased, on average, between 2006 and 2018. In 2018, retail prices for 267 brand name prescription drugs widely used by older adults increased by an average of 5.8 percent. In contrast, the general inflation rate was 2.4 percent over the same period.

Notably, the average annual cost of drug therapy for one brand name drug used on a chronic basis would have been more than $5,000 lower in 2018 ($2,176 v. $7,202) had their retail price changes been limited to the rate of general inflation between 2006 and 2018.

Spending increases driven by high and growing drug prices will affect all Americans in some way. Those with private health coverage will pay more in cost-sharing and higher premiums for their health care coverage. In addition, increased government spending will ultimately lead to higher taxes and/or cuts to public programs.

Policy makers interested in slowing brand name drug price increases should focus on changes that produce sustainable effects. While policy options should encourage meaningful pharmaceutical innovation, such options should be balanced with the need for improved health and the financial security of consumers and taxpayer-funded programs like Medicare and Medicaid.

These AARP Public Policy Institute reports are a continuation of our Rx Watchdog report series that has been tracking manufacturer price changes for widely used prescription drugs since 2004.

For more information, please contact the AARP Public Policy Institute at (202) 434-3890.

Suggested Citation:

Purvis, Leigh, and Stephen W. Schondelmeyer. Rx PriceWatch Reports. Washington, DC: AARP Public Policy Institute, June 2019 https://doi.org/10.26419/ppi.00073.000

Previous Reports

2019

• Trends in Retail Prices of Prescription Drugs Widely Used by Older Americans, 2017 Year-End Update (PDF)
• One-Pager: Price Growth for Brand Name and Specialty Drugs More Than Offset Price Decreases for Generic Drugs (PDF)
• Trends in Retail Prices of Specialty Prescription Drugs Widely Used by Older Americans: 2017 Year-End Update (PDF)
• One-Pager: Specialty Prescription Drug Prices Continue to Climb (PDF)
• One-Pager: Price Decreases for Widely Used Generic Drugs Slow in 2017 after Two Years of Substantial Price Drops (PDF)
• Trends in Retail Prices of Generic Prescription Drugs Widely Used by Older Americans: 2017 Year-End Update (PDF)

2018

• Trends in Retail Prices of Brand Name Prescription Drugs Widely Used by Older Americans 2017 Year-End-Update (Full Report, Sept 2018, PDF)
• One-Pager: Brand Name Prescription Drug Prices Increase Four Times Faster than Inflation in 2017 (Sept 2018, PDF)

2017

• Trends in Retail Prices of Prescription Drugs Widely Used by Older Americans 2006 to 2015 (Full Report, Dec 2017, PDF)
• One-Pager: Price Growth for Brand Name and Specialty Drugs More Than Offset Price Decreases for Generic Drugs (Dec 2017, PDF) 
• Trends in Retail Prices of Specialty Prescription Drugs Widely Used by Older Americans 2006 to 2015 (Full Report, Sept 2017, PDF)
• One-Pager: Specialty Prescription Drug Prices Continue to Climb (Sept 2017, PDF)
• Trends in Retail Prices of Generic Prescription Drugs Widely Used by Older Americans, 2006 to 2015 (Full Report, Sept 2017, PDF)
• One-Pager: Prices of Widely Used Generic Drugs Drop Substantially in 2015 after Two Years of Price Increases (Sept 2017, PDF)

2016

• Trends in Retail Prices of Brand Name Prescription Drugs Widely Used by Older Americans, 2006 to 2015 (Full Report, Dec 2016, PDF)
• Brand Name Prescription Drug Prices Increase by Double-Digit Percentage for Fourth Straight Year (One-Page Summary, Dec 2016, PDF)
• Trends in Retail Prices of Prescription Drugs Widely Used by Older Americans, 2006 to 2013 (Full Report, Feb 2016, PDF)
• Price Growth for Brand Name and Specialty Drugs More Than Offset Substantial Price Decreases for Generic Drugs (One-Page Summary, Feb 2016, PDF)

2015

• Trends in Retail Prices of Specialty Prescription Drugs Widely Used by Older Americans, 2006 to 2013 (Full Report, Nov 2015, PDF)
• Trends in Retail Prices of Generic Prescription Drugs Widely Used by Older Americans, 2006 to 2013 (Full Report, May 2015, PDF)

2014

• Trends in Retail Prices of Brand Name Prescription Drugs Widely Used by Older Americans 2006 to 2013 (Full Report, Nov 2014, PDF)

2013

• Rx Price Watch Case Study: Efforts to Reduce the Impact of Generic Competition for Lipitor (Full Report, June 2013, PDF)

2012

• Trends in Retail Prices of Prescription Drugs Widely Used by Medicare Beneficiaries 2005 to 2009 (Full Report, March 2012, PDF)
• Trends in Retail Prices of Specialty Prescription Drugs Widely Used by Medicare Beneficiaries 2005 to 2009 (Full Report, Jan 2012, PDF)

2011

• Trends in Retail Prices of Generic Prescription Drugs Widely Used by Medicare Beneficiaries 2005 to 2009 (Full Report, July 2011, PDF)
• Trends in Retail Prices of Prescription Drugs Widely Used by Medicare Beneficiaries (Full Report, March 2011, PDF)

2010 

• Trends in Retail Prices of Brand Name Prescription Drugs Widely Used by Medicare Beneficiaries 2005 to 2009 (Full Report, Aug 2010, PDF)