AARP Report: Medicare Drug Prices Nearly Double in 11 Years

A new report from AARP highlights alarming trends in the pricing of prescription drugs covered by Medicare's Part D. Over the past 11 years, the prices of the top 25 drugs have nearly doubled, increasing by an average of 98%. Most of these price hikes outpace the rate of inflation, making essential medications increasingly unaffordable for many seniors. The report notes that a significant percentage of older adults have adopted cost-cutting strategies to cope with high drug prices, thereby jeopardizing their health.

The most affected demographic includes over 7 million enrollees who rely on these medications for chronic conditions like diabetes and cancer, with total spending exceeding $50 billion in 2022. Although recent legislative measures aim to alleviate the financial burden — including a $2,000 out-of-pocket cap and negotiations for drug prices — the report warns that if drug costs continue to rise unchecked, many seniors may skip necessary treatments, leading to poorer health outcomes.

This analysis underscores the urgent need for effective price controls and negotiation strategies in the Medicare program to ensure that essential medications remain accessible to those who need them, particularly as drug costs have risen significantly faster than inflation for many years. AARP advocates for continued reforms to combat high prescription drug prices and improve the affordability of healthcare for older Americans.