Dive Brief:
- A new study by the AARP Public Policy Institute finds the average annual retail cost of specialty drugs has surpassed the median U.S. household income.
- The analysis looked at 115 specialty drugs and determined a one-year prescription for a single drug ran an average of $53,384 at retail cost in 2013.
- That amount is higher than the median U.S. household income, twice the median income of Medicare beneficiaries, and three times the average Social Security benefit for 2013.
Dive Insight:
While the rising cost of specialty drugs is certainly impacting household finances, it's not usually as direct as someone shouldering the retail cost for a drug.
In an interview with The Washington Post, Leigh Purvis of the AARP Public Policy Institute acknowledges insured people don't pay retail cost. However, as prices go up so do the portions for which consumers are responsible, and the amounts shouldered by insurers are ultimately passed along to consumers through higher premiums.
At the same time, PhRMA trade group spokeswoman Holly Campbell argued the report is misleading because it doesn't factor in specialty drug discounts and rebates often negotiated with insurers and pharmacy benefit companies.
The report adds fodder for the rising national debate over skyrocketing drug prices.