The cost of health care is a major concern for most Americans. A recent survey found that nearly two-thirds of respondents are very or somewhat worried about health care costs, considerably more than the share worried about food, housing, utilities, or transportation prices.
The affordability picture will grow only darker as millions of Americans and hundreds of thousands of New Jersey residents face the loss of their insurance coverage, due to federal policies that primarily affect Medicaid and the Affordable Care Act marketplace.
Prescription drugs are a significant and growing part of the health care cost problem, accounting for 21% of the outlay for an average family plan in 2025. Drug costs have increased rapidly, rising 9.7% between 2024 and 2025, and a whopping 234% since 2005.
For most people, affordable prescription drugs are essential to maintain their health. Six in 10 adults take at least one medication daily, and a quarter take four or more. Many struggle to afford their medications, with one in five not filling a prescription because of money, and one in seven reporting that they have split pills or skipped doses.
The burden doesn’t fall equally. Low-income families, older adults on fixed incomes, the uninsured and people living with disabilities or serious illness suffer the most from drug affordability problems, compounding other inequities.
Lure of rebates
Drug affordability is an increasing problem for many reasons.
Credit: RWJ FoundationNinety percent of the drugs that we take are generics, but manufacturers of brand medications with exclusivity have considerable pricing power and can use the U.S. patent system to delay competition. Supply chain complexities can prevent the lowest-cost drugs from appearing on formularies, as rebate deals negotiated between drug manufactures and payers, such as pharmacy benefit managers, can result in outcomes that aren’t best for patients.
Federal policymakers are attempting to make drugs more affordable. Through the Inflation Reduction Act, Medicare can now negotiate prices on certain high-cost drugs, and insulin costs are capped at $35 a month for Medicare enrollees. President Donald Trump’s administration has attempted to induce voluntary price reductions from manufacturers based on international prices.
States, too, are trying to address the issue, with legislation targeting pharmacy benefit managers, pharmacy access, the availability of generics and biosimilars, and co-pay maximums. A number of states also have established drug affordability panels to devise potential solutions.
Tell your story
In 2023, then-Gov. Phil Murphy signed legislation to create the New Jersey Drug Affordability Council. The council will use drug price information and other data, the law says, to “advance the goal of more affordable and accessible prescription drugs for New Jersey residents.” Its first report will evaluate the prescription drug rebate system.
The Drug Affordability Council wants to hear how the cost of prescription drugs affects New Jerseyans. Whether you are a patient or a family member, a pharmacist, clinician or some other participant in the drug supply chain, you can tell your story at monthly public meetings. The March 19 agenda includes an extended opportunity for public comment.
You can register by sending an email to DAU@dca.njoag.gov. We will accommodate as many requests as possible, with comments limited to three minutes.
Please join us on March 19. Help us work toward solutions so that every New Jerseyan can afford the medications they need to live a healthy life.
