800+ Drugs Became More Expensive This January — The Largest Number of Increases in Years
Key takeaways:
In January, 832 drugs increased in price by an average of 4.6%. This is the largest amount of increases we have seen in years.
Of these drugs, 822 were brand drugs, 175 were specialty drugs, and 77 were healthcare practitioner-administered drugs, which means you can only get them under the supervision of a healthcare provider.
These list price increases end up trickling down to patients, especially when a drug is purchased without insurance or with a high deductible health plan.
Amidst a particularly difficult month of the pandemic, drug manufacturers quietly raised prices on over 800 brand and generic medications.
These January price bumps aren’t new. Since 2014, we have been seeing a jump in the GoodRx List Price Index at the beginning of every year, signaling pharma’s yearly price increases. What is new, though, is the amount of drugs that are increasing in price — this year, we saw the largest number of increases we have ever seen.
In January, 832 drugs increased in price by an average of 4.6%. This breaks down to 822 brand drugs and 10 generic drugs and includes all over-the-counter and healthcare practitioner-administered medications. On top of that, 175 drugs that increased this year were specialty drugs, which means that they were likely already quite expensive.
Which drugs increased in price this January?
From December 31, 2020 to January 31, 2021, over 140 manufacturers (like Pfizer, Abbvie, and Boehringer Ingelheim) raised the list price of their drugs, and many of these drugs had seen increases in past years. Blockbuster drugs and those that top the GoodRx Most Expensive Drug list weren’t safe from increases, either.
Many drugs that went up in cost have seen substantial price increases over the past 3 years. In fact, 50% of the medications that increased in price in 2021 also increased in price in 2020 and 2019. This list includes popular, expensive, brand-only medications like Humira (up 21%), Nucynta (30%), Cosentyx (24%), and Skyrizi (15%). Humira, for instance, is one of the most popular brand medications, raking in nearly $15 billion in 2019 for manufacturer Abbvie. And with few alternative options for patients, a 21% increase in the drug could price out many consumers who rely on it.
Cerdelga, Takhzyro, Cinryze, Gattex, Tegsedi, and Ayvakit are among the 20 most expensive drugs in the U.S., each with a list price of over $27,000 per year. All saw price increases this January. Cerdelga increased by 14.8% over the last 3 years, and Takhzyro, with a list price of $46,828 per month, has increased in list price by 6% over the last 2 years.
How do list price increases affect consumers?
Due to the opaque nature of drug prices, list prices may seem rather removed from consumers. Drug manufacturers typically negotiate rebates on their list prices, and as a result, those with insurance rarely pay the full list price. But list price increases do end up affecting consumers, especially those with high deductible health plans or without insurance altogether.
According to GoodRx research, since 2014, 89% and 47% of list price increases trickled down to National Average Drug Acquisition Cost (NADAC) and cash price increases that were as high or higher in magnitude, respectively. The NADAC and cash prices are what retail pharmacies and consumers pay for prescription medications, respectively.
List price increases are typically passed down to patients in the form of higher insurance costs. When a manufacturer raises the price of a medication, the insurance provider likely has to pay more for that drug. They can make up the cost by raising premiums, increasing copays, or placing the drug on a higher tier in insurance plans — which means the patient ends up paying more out of pocket for it.
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Co-contributors: Sara Kim, MS, Jeroen van Meijgaard, PhD
Methodology:
All of these prices are based on the list price — the price of a drug that is set by the manufacturer. Few patients actually pay this price because they are typically shielded by their health insurance. But the list price is still a good proxy for the price of a drug. In essence, rising list prices lead to rising out-of-pocket costs for patients. This analysis tracks all drugs in our list price index as of December 31, 2020.
*These numbers do not include price increases for healthcare practitioner-administered and over-the-counter medications.
