Infographic: Spending on Prescription Drugs Has Been Growing Exponentially
Last Updated March 26, 2024
Prescription drugs play a vital role in the U.S. healthcare system, enabling Americans to live longer, higher-quality lives. However, the growing cost of those drugs presents a challenge to the quality and affordability of healthcare in the United States.
U.S. spending on prescription drugs has risen substantially in the past 20 years, climbing from $141 billion in 2001 to $378 billion in 2021. Furthermore, the Centers for Medicare and Medicaid Services project that such spending will continue to grow, rising to $592 billion by 2031 — an increase of 57 percent.
That growth in spending can be attributed to many factors, including the number and type of drugs prescribed. Some common reasons include:
- High and rising prices for brand-name drugs;
- a lack of competition due to the U.S patent system;
- the use and cost of specialty drugs; and
- a lack of transparency in drug prices.
While prescription drugs can help improve health outcomes in the United States, the rising cost of those drugs can place a financial strain on American families and the country’s fiscal health. Containing prescription drug costs is important to consider for improving the U.S. healthcare system and addressing the nation’s long-term fiscal challenge.
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Further Reading
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