Two score and 16 years ago, Kennedy was winning and this country was spending $2.7 billion for prescription meds. That's $15 for every American, 115 in today's dollars.
That's nothing like what we spend now. In 2014, we spent $297 billion, or $933 of prescription drugs for every American man, woman and child. Take inflation into consideration. That represents more than a 600% increase.
And because of a quiet revolution in health insurance, that increase, is draining our wallets. It used to be most insurance involved co-pays, the fixed amount you pay for a service. You paid a little, maybe 15 bucks for a prescription. Insurance picked up the rest – co pay.
Today it's all about deductibles, an amount you must pay before insurance kicks in. In 2006, only 10% of people who received insurance through work had a deductible of a thousand or more. Today, for the first time, a majority do, And many have deductibles of $3,000, $5,000 $10,000. So when prescription drug companies boost prices by 100%, 200%, 600%, those who rely on those drugs and have deductibles pay more; sometimes a lot more.
No wonder why we're all paying more out of pocket for health care. Add up deductibles, copays and premiums, we're paying nearly 90% more in ten years; far outpacing the rate of inflation.
SO consider all of that, when you consider why we are taking a much closer look at the price spikes of 100 prescription drugs; many of which have been around for at least a score or two.