U.S. Prescription Drug Spending Escalates by 10.2% in 2024

1 minute read

A report from the American Society of Health-System Pharmacists (ASHP) shows U.S. prescription drug spending hit nearly $806 billion in 2024, a 10.2% rise from 2023, driven by the demand for weight loss drugs like GLP-1, now the leading and fastest-growing drug category.

Tariffs on pharmaceutical ingredients, particularly from China, may raise prescription drug prices, leading to shortages and forcing patients to opt for costlier brand-name alternatives. The ASHP report indicates that these factors could impact prescription, clinic, and hospital spending in 2025:

• Oncology spending - High-cost drugs and new therapy implementations may increase oncology spending.
• Vaccine expenses - Post-COVID-19, vaccine spending has declined, and rising anti-vaccine sentiment may lead to increased costs in other healthcare sectors.
• New generics and biosimilars - Affordable prescription drug options can curb spending growth, with Entresto's patent expiring in 2025.

Employer Takeaway

As prescription costs rise, employers face higher healthcare expenses. While they can't control drug prices, they can educate employees on benefits, best practices, and coverage details. By informing employees about the healthcare system, such as finding generic medications, they can make informed choices. Download the bulletin for more details.