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US prescription drug spending rose 10.2% in 2024

US prescription drug spending rose 10.2% in 2024

Prescription drug spending in the United States continues to rise sharply. According to a new report from the American Society of Health-System Pharmacists (ASHP), U.S. prescription drug spending reached nearly $806 billion in 2024 (an increase of 10.2% compared to 2023). 

[Download the full PDF report] 

The main driver behind this growth?  

Medications, used to treat diabetes and obesity, have seen rapid adoption and high utilization across many populations. In 2025, several factors continue to impact prescription drug spending: 

  • Tariffs on pharmaceutical ingredients, especially those sourced from China, may lead to shortages and drive patients toward more expensive brand-name medications. 

  • Oncology drug spending is expected to grow as new high-cost treatments enter the market and the use of existing therapies expands. 

  • Vaccine spending has declined post-pandemic, but reduced vaccination rates may contribute to rising costs in other areas of care. 

  • New generics and biosimilars, including a generic version of Entresto, a widely used heart failure medication, may help moderate future spending growth. 

Employer considerations 

Employers sponsoring health plans should be aware that rising prescription drug costs may contribute to increased healthcare spending. While employers cannot control pharmaceutical pricing trends, they can support employees by promoting cost transparency, encouraging the use of generics and ensuring employees understand their pharmacy benefits. 

Employee education remains a key strategy to help mitigate the impact of rising drug costs on both plan sponsors and members. 

For more insights on the latest drug spending trends and practical steps, download the full report. 


Questions? 

If you have questions, contact TruePlan. Our team of advisors can help you with questions within the scope of employee benefits.   

This content is for informational purposes only. It has been partially generated from an AI language model, which may not always be exhaustive or tailored to individual circumstances. We encourage you to contact one of our experts for more information. We assume no liability arising from any use of this content. 

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