The cost of retail prescription drugs has become a top health policy issue for consumers and policymakers. KFF polling from July 2023 found that more than 1 in 4 adults taking prescription drugs report difficulty affording their medication, including 40% of those with household income of less than $40,000 per year.
In this chart collection, we use 2021 National Health Expenditures Accounts (NHEA) historical and projection data to look at trends in retail prescription drug spending and use. Retail prescription drugs do not include drugs that are physician-administered in hospitals, physician offices, outpatient centers, long term care facilities, and at home. Trends in physician-administered drug spending may differ from trends in spending on retail prescription drugs.
Note: Total Health (Actual) and Total Health (Projected) represents average growth within decade.
Following a slight decrease in 2020, per capita retail prescription drug spending increased in 2021. Spending growth in this category was fairly modest throughout the 2010s, with the exception of a period between 2013-2015 when two high-cost specialty Hepatitis C drugs came to market. Looking ahead, NHEA projections suggest growth in per capita drug spending is expected to be moderate through 2031.
Note: Data for United States represents point-of-sale prices and do not account for manufacturer rebates. Data from Switzerland and the United Kingdom represent average private sector costs.
Data for United States represents point-of-sale prices and do not account for manufacturer rebates.
Note: Medicare Part D prescription drug coverage was implemented in 2006
Source: Kaiser Family Foundation analysis of data from National Health Expenditure (NHE) data from Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group
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