U.S Insights: January 2024 Drug Price Changes

Drug price changes can occur at any time during the year; however, historically, drug manufacturers most commonly increase prices in January and July.

Between January 1, 2024, and January 31, 2024, more than 700 brand drugs had price increases of an average of 5.4% (median, 5%), and approximately 40 generic drug prices increased by an average of 39% (median, 10%), based on wholesale acquisition cost (WAC). In comparison, the annual inflation rate in the United States is currently 3.1%. Most drug price increases were between 4% and 6%, with the majority being single-source brand, self-administered, pharmacy-benefit products. Over 350 specialty brand drugs, including both self- and professionally administered products, had price increases.

Recently passed legislation seems to be having an impact on drug price changes, including the inflation rebate penalty and Medicare price negotiation provisions in the Inflation Reduction Act (IRA). Eight of the ten drugs chosen for Medicare price negotiation in 2026 had price increases in January 2024: Eliquis (5%), Jardiance (3%), Xarelto (5%), Januvia (4.71%), Farxiga (3%), Entresto (3%), Enbrel (5%), and Stelara (5%).

While manufacturers regularly raise their prices, they rarely voluntarily reduce their list prices. There were over 20 brand drugs with price decreases in January 2024. This is in striking contrast to 2023, when only two brand drugs had a decrease in price during the month of January. We believe this may be in response to the removal of the average manufacturer price (AMP) cap on Medicaid rebates, which took effect on January 1, 2024.