How Much More Will You Pay for Prescription Meds Under New Tariffs?
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Tariffs imposed on the countries with which the U.S. imports many goods may hit one area especially hard — prescription medications.
Numerous components of the medications people take every day are manufactured overseas, particularly for generic drugs, allowing them to remain at significantly lower prices for U.S. residents.
Experts explained what to expect and tried to estimate how much more you may be paying once tariffs are truly underway.
Prices May Creep Up Over the Year
Tariffs are like extra taxes when we bring things in from other countries. When those costs go up, it doesn’t stay with the companies — it usually lands on the patient, said Dr. Steven Davidowitz, a cosmetic dentist at Luxury Dentistry NYC.
While pharmaceutical companies are currently capped on how much they can increase drug prices for consumers, and may initially absorb tariff increases, they do have some wiggle room to pass costs on to the consumer.
Davidowitz anticipates that these price increases will likely begin to show up later this year. “Pharmacies still have some stock that was bought before the tariffs kicked in. Once they need to restock, that’s when people will start feeling it.”
Everyday Meds May Be Hardest Hit
The medications that may be hardest hit by price increases are likely to be the everyday meds people count on, such as antibiotics, blood thinners and antivirals, Davidowitz said. A lot of the ingredients for those are made overseas.
“For some things, it might just be a few bucks. But other meds could jump quite a bit, especially if there are supply issues. When you’re refilling every month, that adds up fast.”
Those on Fixed Budgets May Feel It Most
Whitney Stidom, vice president of Medicare enablement at eHealth, is concerned about how these tariffs will affect medication prices for those on fixed budgets, such as Medicare beneficiaries.
“Even before potential tariffs, recent eHealth research showed Medicare Part D prescription drug plan premiums increased 25% in the last year, the biggest jump in the eight years of tracking this statistic,” she shared.
A separate eHealth report found drug costs ranked among the most common worries for 50% of Medicare beneficiaries, she shared.
It Depends On Your Insurance
Stidom said that drug increases will depend on what type of prescription coverage a person has and whether their cost sharing is a copay, a set dollar amount or coinsurance, percentage based.
“Over time, higher drug costs could result in higher monthly drug plan premiums or changes to insurance plans’ drug formularies, Stidom said.
“If you’re paying cash, you’re going to feel it right away,” Davidowitz said. While those with insurance might not notice it immediately he said that insurance companies usually adjust pretty fast. “Either way, it’s going to catch up to everyone.”
Healthcare costs are continually rising even without tariffs, Davidowitz said, and when medicine prices climb, insurance rates usually climb too. “It all feeds into making everything just a little harder to afford.”
Generic Medications May Go Up
Stidom expects that generic medications are most likely to see cost increases as compared to brand name medications, given that most generics are imported from outside the U.S.
She recommended people talk to their doctors or pharmacists about cost concerns as they may be able to help you find a lower cost alternative on your plan’s formulary.
Shop Prescription Options
You might also want to shop your prescription insurance options annually in the fall to ensure you have the coverage you need and a plan that saves you the most of your medications, Stidom said. “It can pay to shop around.”
Review Medicare Enrollment
For 2025, Medicare has capped out-of-pocket drug costs at $2,000, at least. Barring any Congressional changes, that’s good news, Davidowitz said.
For anyone on Medicare who is not happy with their plan, Stidom pointed out that Medicare’s annual enrollment period starts in October.
“Whether you get your prescription drug coverage through a Medicare Advantage plan or a stand-alone Part D plan, you can review your options based on your personal drug regimen and see which plans will save you the most money.”
Medicare prescription plans can differ in the drugs they cover and in the out-of-pocket costs you’ll have when filling a prescription.
Don’t Wait
If you’re worried that your drug prices are going to skyrocket, Davidowitz urged, “Speak up early. Talk to your doctor before it becomes a bigger problem.” Most of them can help you save money through cheaper meds, pharmacy savings programs or patient assistance groups.
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