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Our nation’s prescription drug market is rapidly evolving, and at SingleCare, we have a front row seat to that change. Our goal is to save people money on their medications; with rising drug costs and a high reliance on prescriptions in the United States, that mission is more important than ever. In our latest Pharmaceutical Trends Report, we discuss the current state of prescription drugs and what’s on the horizon that could provide relief. For the full report, click here—and read some of the highlights below.
The state of prescription drugs
Americans rely on a lot of medication (45.8% of people use at least one prescription drug, and 21.8% use three or more)—and we spend an incredible amount on it, too.
Per capita spending on prescription drugs exceeds $1,200, which is more than any other country in the world. In 1960, Americans spent $2.7 billion on prescription medication. And while that would be $23.4 billion when adjusted for inflation, it still doesn’t account for the whopping $360 billion we spend now. Currently, increases in prescription drug pricing surpass inflation rates. In 2018, prices increased by 5.8%. The general rate of inflation that same year was “only” 2.4%.
The high cost of drugs is multifaceted: Pharmaceutical developers point to research and development, which includes money and time to earn FDA approval. Lack of competition, conflicts of interest among industry players, inflation, and simple price increases are also factors. Imported pharmaceuticals could lower costs. After all, 60% of drugs sold in the U.S. are manufactured abroad. However, this savings hasn’t been passed on to customers.
How to save on prescriptions
One way consumers can save on medication is by taking generic medications—and the good news is generics are on the rise. 85.6% of patients receive generics instead of their brand-name counterparts and a staggering 4 billion generic prescriptions were filled in 2018. Even better? 1,171 generic drugs received FDA approval in 2019, which is an all-time high.
Consumers can also find savings is through pharmacy savings cards (like SingleCare), manufacturer and store coupons, prescription assistance programs (PAPs), and copayment offset programs.
The changing landscape of pharmacies
It’s no secret that e-pharmacies on the rise. With delivery options like NowRx, Capsule, and PillPack, the way patients access meds is changing. There’s also been a rise in app-based prescription access that allows patients to get prescriptions for things such as erectile dysfunction or migraine relief from the comfort of their homes. But that doesn’t mean that brick-and-mortar pharmacies are declining. In fact, that number has increased (ever-so-slightly) in the past decade. There are now more than 67,000 physical pharmacies in the U.S.