One in three Americans don't have money for the medication they need

About 85% of those 60+ take medication

For senior citizens, the number is even higher. About 85% of adults aged 60 or older are taking at least one prescription medication per day.

Rates of women and men

A study from Penn State University, pointing to the prominent and, in some ways, permanent role medication has taken in our lives, notes that US-born men will spend nearly half their lives taking prescription medication, while for US-born women that number reaches 60%.

Types of drugs

What accounts for the difference between men and women's prescription intake? For starters, hormonal contraceptives and birth control account for about one-third of the difference. But women also have greater use of painkillers and psychotherapeutic drugs, for conditions such as depression, anxiety, and ADHD. For their part, men overwhelmingly take drugs to treat cardiovascular disease.

Prescription drugs cost US$335 billion

In 2018, prescription drug costs reached US$335 billion. Out-of-pocket costs, meaning costs not covered by health insurance or any other private options, accounted for 14% of all spending ($46.9 billion). By 2026, the number is set to increase by nearly 200%.

Impact of medication use

Has increased use of prescription drugs made Americans healthier? This is unclear. Many medications that are taken today have only been on the market for the last 40–50 years. Therefore, it hasn’t been long enough to really understand the impact to overall health and quality of life. Although, there is a decrease in premature deaths from chronic diseases that can be mitigated through proper treatments.

Socio-economic conditions

In 2019, the life expectancy for Americans was 79 years, the highest it had ever been. By 2021, the number dropped to 76 years. It is worth noting that regions with the lowest life expectancies are also those struggling with difficult socio-economic conditions.

Influence of disease management to life expectancy

Therefore, there seems to be a clear link between access to medical care and life expectancy. Given the sheer percentage of Americans that are taking prescription medication, we can also assume that access to medication and disease management could also influence those numbers.

Uninsured must make difficult choices

A 2021 study found that newer drugs for chronic conditions, including cancer and diabetes, often cost tens of thousands per year. This cost, coupled with rising poverty rates (nearly 12% in the US), makes access to medication for the uninsured or underinsured impossible, as patients are forced to choose between medication or other necessities.

Resistance from Big Pharma

Pharmaceutical companies claim that the price of medication is due to the high costs involved with research, development, and regulatory approval. But the supply chain of drug production is quite clear, and companies’ reasoning doesn’t quite reflect it.

Drug shortage

In 2023, 123 drugs experienced shortage, the overwhelming amount of which consist of chemotherapy drugs. Approximately 90% of cancer treatment centers in the US are facing shortages.

Legal prohibition of negotiations

Unlike many other countries, the US overwhelmingly does not negotiate with drug companies. This was concretely made into law in 2003 by then-President George W. Bush, which explicitly prohibited the government from directly negotiating prices. Coupled with a lack of regulation, pharmaceutical companies have little incentive to lower prices.

Negotiation only for Medicare patients

Advocates believe this approach remains partial and incomplete, as this negotiation only applies to those with Medicare, which only accounts for 18% of the population. Nearly 10% of Americans do not qualify for Medicare and do not have access to private healthcare options.

Measures to prevent implementation of negotiations

The effort by the Biden administration to negotiate these 10 drugs has not been met with ease by the pharmaceutical industry. Lawsuits have followed. Public attacks geared toward Democrats, too. Many efforts are being made by the industry to prevent this measure from being implemented. With the uncertainty of the 2024 election, the unclear fate of these efforts remains abstract.

Some 64% of lobby money goes to Republicans

The pharmaceutical industry spends the most money on political lobbying. Since the 1990s, Republicans have received 64% of the campaign contributions from these lobbies. It is worth noting that no Republican voted in favor of the Inflation Reduction Act.

Are negotiations an act of 'big government'?

Although the Inflation Reduction Act won’t control the prices of drugs sold via private insurers, the efforts to do so for public healthcare coverage is viewed as ‘big government’ and, essentially, an intervention of the market. In reality, the US government would, in this case, actually function as a business, or a purchaser, rather than a price regulator.

Lawsuits will likely go to Supreme Court

The pharmaceutical industry has filed several lawsuits arguing that the kind of negotiations that the Inflation Reduction Act proposes is unconstitutional. These cases will likely go to the Supreme Court.