Pharma’s drumbeat to justify drug prices is at odds with consumer sentiments

As much as the pharma industry argues that unparallelled innovation in the U.S. justifies drug prices, a growing share of Americans feel it’s difficult to afford prescription drugs.

More than 1 in 5 U.S. adults said they have not filled a prescription because of the price, while 21% said they sought over-the-counter alternatives to prescription drugs due to the cost, according to KFF polling data released in March. About 1 in 10 said “they have cut pills in half or skipped doses of medicine in the last year because of the cost.”

Not only are some Americans finding it hard to pay for prescriptions, but drug costs also weigh heavily on their minds. More than half the public said they are very or somewhat worried about being able to afford their prescription drugs, the polling found.

Previous polls show similar findings. In 2021, 1 in 6 insulin users said they rationed their insulin, while 7% of adults said they delayed or didn’t pick up their medication due to costs in 2022.

Last year, the vast majority of Americans said they believed prescription drug prices were too high, with 82% calling them “unreasonable.” At the same time, 65% said affording prescription drugs was very or somewhat easy. The paradox still revealed a significant percentage of Americans thought affording prescription drugs wasn’t easy. Those with the most difficulty were more likely to have household incomes of less than $40,000 and take four or more prescription medications.

Pharma’s pricing problem

While Americans are feeling the pinch in their wallets or forgo their medications, the pharma industry maintains that drug price growth has slowed and accounts for a small part of overall healthcare costs. 

Drug costs make up 14% of the country’s total healthcare spend, according to industry association and lobbying group PhRMA. The association also noted per capita spending on medicines grew 2.5% in 2022, far below the 8% rate of inflation.

The slow rate of drug price increases is on par with other findings, but Americans’ sentiments don’t match up. That may be because health plans saw lower costs after net prices fell 2.8% during the fourth quarter of last year, although this was mostly driven by a huge drop in the net price of Humira.

Still, the issue looms large for American voters — 48% of respondents in KFF’s poll said lowering out-of-pocket costs is their top health priority in the upcoming presidential election. Notably, the Biden administration is pushing forward with Medicare’s newfound ability to negotiate drug prices, with the first wave of 10 selected treatments currently in negotiations with drugmakers, who have pushed back through several lawsuits.