GoodRx Launches New “Prescription Cost Tracker” to Spotlight Key Factors Driving Out-of-Pocket Medication Costs in the U.S.
GoodRx (Nasdaq: GDRX) has launched a new 'Prescription Cost Tracker' aimed at shedding light on out-of-pocket medication costs in the U.S. as of 2024. The tool will track trends in prescription spending, highlighting key factors such as high medication costs, reduced insurance coverage, and increased friction in the system.
Key findings include that Americans have spent $21 billion out-of-pocket on prescriptions in 2024, averaging $16.26 per prescription. Additionally, 37% of prescription medication list prices have increased since 2014. Reduced insurance coverage is also a significant issue, with only 54% of medications covered by insurance and 50% of those covered by Medicare having restrictions. Increased friction is seen in challenges like 41 million Americans lacking proper access to a pharmacy.
GoodRx aims to use the data to fight for lower prescription costs and provide greater price transparency for consumers.
- $21 billion spent out-of-pocket on prescriptions in 2024, highlighting a significant market opportunity for GoodRx.
- GoodRx's new Prescription Cost Tracker enhances price transparency and affordability, potentially increasing user engagement.
- Average out-of-pocket cost per prescription at $16.26, giving insight into consumer spending habits.
- 37% increase in list price of all prescription medications since 2014, reinforcing the need for cost-saving platforms like GoodRx.
- Reduced insurance coverage with only 54% of medications covered and 50% of Medicare-covered medications having restrictions.
- High friction with 51 million Americans leaving prescriptions unfilled every month and 20% experiencing out-of-stock prescriptions.
Consumers have paid
High Medication Costs:
Policymakers and pharmaceutical manufacturers are making efforts to improve medication access and affordability, but costs continue to be a significant burden for many. GoodRx found:
-
$21 billion -
$16.26 -
37% increase in list price for all prescription medications since 2014
Reduced Insurance Coverage:
Healthcare is often paid for by insurance, but more Americans are caught in a “Big Pinch” as insurance plans — both Medicare and commercial — cover fewer medications and add more restrictions on coverage:
-
54% of medications are covered by insurance (based on Medicare plans) -
50% of medications that are covered by Medicare have an insurance restriction (e.g. step therapy, prior authorization) -
25% of Americans have at least one prescription not covered by insurance
Increased Friction:
Difficulty navigating insurance hurdles and supply shortages have created more and more obstacles for patients. GoodRx found:
- 41 million Americans lack proper access to a pharmacy
- 51 million Americans leave a prescription at the pharmacy every month
-
20% of Americans have an out-of-stock prescription
“Despite efforts by policymakers and industry leaders to break down affordability and accessibility barriers, a patient’s actual out-of-pocket cost continues to increase and is often a huge surprise to them,” said Scott Wagner, Interim CEO of GoodRx. “We at GoodRx are working to bring affordability and transparency to Americans. With our new Prescription Cost Tracker, we aim to provide an easy-to-understand, continuously updated resource that will help aid in the fight for lower costs for all.”
To learn more and view the GoodRx Prescription Cost Tracker, visit goodrx.com/out-of-pocket-costs.
About GoodRx
GoodRx is the leading prescription savings platform in the
GoodRx periodically posts information that may be important to investors on its investor relations website at https://investors.goodrx.com. We intend to use our website as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors and potential investors are encouraged to consult GoodRx’s website regularly for important information, in addition to following GoodRx’s press releases, filings with the Securities and Exchange Commission (the “SEC”) and public conference calls and webcasts. The information contained on, or that may be accessed through, GoodRx’s website is not incorporated by reference into, and is not a part of, this press release.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the benefits of Prescription Cost Tracker and our other offerings to GoodRx, healthcare stakeholders and/or consumers; future updates to Prescription Cost Tracker; and our plans, expectations and objectives. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, risks relating to our ability to achieve broad market education and change consumer purchasing habits; changes in medication pricing and pricing structures; the calculation of certain metrics that are subject to inherent challenges in measurement; government regulation of the internet, e-commerce, consumer data and privacy, information technology and cyber-security; and the important factors discussed under the caption “Risk Factors” in GoodRx’s Annual Report on Form 10-K for the year ended December 31, 2023, and our other filings with the SEC. These factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
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Source: GoodRx
FAQ
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