Medicine is expensive — so expensive that four in 10 people have skipped doses, not filled prescriptions, or taken other risks to afford their medication. While some policymakers propose federal price caps, they ignore the root problem: there is almost no consumer market for medicine. However, direct-to-consumer (DTC) pharmacies are beginning to change that.
DTC pharmacies fall into two categories. The first includes online platforms where patients can see prices for generic medicines before filling their prescription, allowing them to choose the lowest-cost option and forcing manufacturers to compete on price. Examples include Cost Plus Drugs, Amazon Pharmacy, HealthWarehouse,and Honeybee Health. The second type includes brand-name manufacturers such as Eli Lily, Pfizer and Novo Nordisk, which offer products directly to patients, often at lower prices.
Demand for a consumer-driven healthcare model is growing, and patients increasingly recognize that insurers and pharmacy benefit managers are not reducing drug costs. Insurance adds administrative overhead to every prescription, while pharmacy benefit managers often retain discounts rather than pass them on to patients.
Justin Leventhal is a Senior Policy Analyst for the American Consumer Institute, a nonprofit education and research organization that advocates for consumers through evidence-based analysis and data. Follow Justin on X @JustinLeventhal.