Not even a pandemic can cause drug prices to drop in America.
Since 2014, drug prices have increased by 33% in the United States, outpacing price increases for any other commodity or service. All other medical services combined have increased by about 17% over the same time period.
The analysis compared data on the prices of medical goods and services from the Bureau of Labor Statistics' Consumer Price Index to data from the GoodRx Drug List Price Index. Other medical services such as care provided in inpatient hospital settings, nursing homes and dental practices increased by 30%, 23% and 19%, respectively.
In January 2020 alone, 639 drugs saw an increase in list price by an average of 6%, increasing prescription list prices overall by 3%. But during that same time period, wages only increased by 0.3%.
While prices have increased by 33% since 2014, average hourly earnings are only up by 23% despite COVID-19’s effect on the numbers. It’s no wonder that many Americans are finding it hard to afford their prescription drugs.
So what does this tell us? With almost 40 million Americans filing for unemployment, prices for prescription drugs are out of control and the nation is feeling it. Expect Americans to vote on it.