Drug makers are hiking prices for life-saving meds. What does this mean for GA consumers?
January is shaping up to be a very eventful month for health and wellness. In addition to the record-breaking numbers of illnesses in Georgia, drugmakers raised the list prices on 575 name-brand drugs in the first two days of January 2025, according to drug price research firm 46brooklyn.
Drug prices routinely increase every year, and while 2025 is lower than previous years, it still exceeds the current inflation rate of 2.7%. However, there is a bright side. In 2025, drug companies are taking a gentler approach to pricing, reducing their annual price increases from previous double-digit jumps to a more moderate 4% average.
The most notable increases are for medications treating diabetes, HIV, and cancer, affecting millions of lower-income Georgians or those on Medicare. Antonio Ciaccia, CEO of 46brooklyn, told NPR, “January is typically a popular time to raise prices on brand name drugs, but companies can raise them throughout the year. There could even be more later this month.”
The impact of these price increases is exacerbated by the fact that 55% of Georgia adults reported being worried about affording prescription drugs. Additionally, 38% of Georgia residents reported not filling a prescription, cutting pills in half, or skipping doses due to cost concerns in the past year.
What kinds of drugs will be the most affected?
Diabetes medications: Ozempic, a popular Type 2 diabetes drug, increased by about 3%. Over 91,000 Medicare enrollees in Georgia take diabetes medications like Jardiance, Januvia or Farxiga.
Cardiovascular drugs: Price increases for blood thinners like Eliquis and Xarelto will affect more than 142,000 Medicare enrollees in Georgia. This follows the trend of price hikes for these medications; 5.9% and 4.1% respectively in 2020, and there will likely be more increases in 2025.
Cancer treatments: Many drugs used to treat cancer will see increases. Adcetris, Ibrance, and Xeljanz will see price hikes between 3% and 5%; Abecma and Breyanzi by 6% and 9% respectively; and Hodgkin’s disease treatment Matulane by around 15%.
HIV medications: Biktarvy will have a 5.9% increase as well as other HIV drugs that will likely see price hikes as well.
Why are prices increasing?
Drug prices in America, including Georgia, rise due to a complex mix of factors:
Minimal regulation: The U.S. lacks federal price controls, allowing pharmaceutical companies to set high prices without competition.
Monopoly power: Many new drugs have no alternatives, enabling companies to charge what they want.
Continuous increases: Existing medications often see significant price hikes that exceed general inflation rates.
Complex supply chain: Multiple intermediaries, such as pharmacy benefit managers, contribute to higher costs.
High R&D and marketing costs: Companies justify high prices by citing the need to recover expenses from research, development, and marketing.
What can consumers do to combat rising drug prices?
Before undertaking measures on your own, you can contact The Georgia Department of Community Health or local community health centers. They can often provide personalized guidance on reducing prescription drug expenses.
Maximize and utilize Medicare benefits
Find institutions that vaccinate for free
Ask doctors about generic medication alternatives
Compare pharmacy prices using online tools
Explore patient assistance programs from drug manufacturers
Consider mail-order pharmacies for better pricing
Check eligibility for Extra Help program for low-income residents
Use state and federal resources to find medication discounts
Although it may seem bleak, legislative measures like the Inflation Reduction Act (IRA) aim to mitigate these impacts by providing savings and capping out-of-pocket expenses for Medicare beneficiaries.
Aside from that, write to your representatives, examine your medical bills closely, and stay well out there.
This story was originally published January 23, 2025 at 12:26 PM.
