### How Much Do Prescription Drugs Cost Without Insurance?
Without insurance, prescription drugs can be incredibly expensive because pharmacies charge what is known as the “Usual and Customary Price.” According to the 2020 United States Census, 8.6% of Americans lack medical insurance, drastically increasing their healthcare costs.
A survey concerning the [cost of prescription drugs in the US](https://prohealthsupporter.com/prescription-drugs/) revealed that over three-quarters of adults find prescription medications unaffordable. Moreover, one in three adults has had to discontinue taking their medicines due to financial constraints.
The Organization for Economic Cooperation and Development (OECD) reports that **Americans spent $1,126 per capita on prescribed medicines**—over twice the average ($552) spent by individuals in other member countries. These expenses include both insurer payments and out-of-pocket costs borne by patients for prescription renewals.
Recent data shows that U.S. spending on prescribed medicines increased by 69% between 2004 and 2019. This growth rate is significantly higher compared to the average 41% increase observed in other countries. In general, **Americans bear higher out-of-pocket costs for prescription drugs** than their counterparts in comparable nations without insurance.
## What Drives High Drug Prices in the U.S.?
Several factors contribute to the high cost of prescription medications in the U.S.:
1. Lack of transparency in drug pricing
2. A less competitive drug market due to mergers and acquisitions among manufacturers
3. Limited capacity of entities like Medicare to negotiate drug prices
4. Increased total spending influenced by the quantity and type of drugs prescribed, particularly more expensive specialty medications
This high spending has severe implications for uninsured Americans who depend on medications, as well as for the U.S. budget and fiscal health.
## Comparison of Prescription Drug Prices: U.S. vs. Canada
As highlighted, the cost disparity between the U.S. and other countries is stark. Canada, for example, has managed to keep pharmaceutical costs more affordable even for those not covered by provincial or private Medicare plans.
In Canada, price gouging is illegal. The Patented Medicine Prices Review Board ensures new brand-name drugs aren’t excessively priced and controls price hikes within inflation rates. This regulatory approach is one reason Canadian medications cost less than those in the U.S.
Below is a comparison of prices for some commonly prescribed drugs in the U.S. versus Canada, illustrating the potential savings.
| Drug Name | U.S. Price | Canada Price | Savings (%) |
| Januvia: Type 2 Diabetes | $1,355.74 | $371.58 | 73% |
| Spiriva: COPD | $1,306.05 | $281.58 | 78% |
| Entocort: Crohn’s Disease, Ulcerative Colitis | $2,057.41 | $238.27 | 88% |
| Crestor: Cholesterol | $731.17 | $210.52 | 71% |
| Flovent Diskus: Asthma | $192.92 | $59.63 | 69% |
| Xarelto: Blood Clots | $1,347.98 | $474.29 | 65% |
| Premarin: Estrogen Replacement Therapy | $496.99 | $96.15 | 81% |
| Dexilant: Stomach & Esophageal Issues | $622.24 | $272.98 | 56% |
| Synthroid: Hormone Deficiency | $118.15 | $35.17 | 70% |
| EpiPen: Allergies | $607.36 | $276.63 | 54% |
This comparison indicates potential savings of 50% to 80% on prescription drugs when comparing U.S. prices to those in Canada.
### Prescription Drug Myths
Contrary to popular belief, the fastest-growing drugs in the U.S. aren’t illicit substances like cocaine or heroin, but prescription medications. This fact is among the surprising [findings](https://www.samhsa.gov/homelessness-programs-resources/hpr-resources/rise-prescription-drug-misuse-abuse-impacting-teens) for researchers specializing in pharmaceuticals.
Consider the following statements about prescription drugs. Which one is **FALSE**?
1. Expensive drugs **equate** to better drugs
2. Brand-name drugs are **similar** to generics
3. Only brand-name drug prices are getting pricier
4. Your physician **can’t affect** what you pay for your medicine
5. Drug company **discounts will save you** money
If you answered **FALSE** to all of the above, you are correct. These statements are common myths about prescription drug prices in the U.S.
**Fact #1**: Generic drugs, though cheaper than brand-name variants, are designed to deliver the same safety, strength, quality, and performance.
**Fact #2**: While generics share the same active ingredients as brand-name drugs, they may differ in cosmetic characteristics like flavor and color.
**Fact #3**: While brand-name drugs are often more expensive, generic drug prices have also been rising. A 2016 Government Accountability Office report revealed that 300 generic drugs doubled in price the previous year, but they remain cheaper than brand-name drugs.
**Fact #4**: Having detailed conversations with your physician about medical options can save you money. If a drug is too expensive, your doctor might be able to suggest more affordable and equally effective alternatives.