April 17, 2025
The Boston Globe recently published an article featuring Rena Conti, Associate Professor of Markets, Public Policy, and Law, discussing how prescription drug prices are rising sharply, straining patients, health insurers, and employers especially in Massachusetts.
Rising prescription drug costs are being driven by several factors—most notably the surging demand for expensive weight-loss medications like GLP-1s, steep launch prices for new therapies, and ongoing hikes in the cost of existing drugs. While states are taking steps to rein in costs through price caps and transparency laws, overall spending continues to rise. Health insurers are reporting major losses, fueling concerns about future premium hikes.
“Demand for these drugs is quite dramatic. And I don’t anticipate demand is going to fall in the near term,” Conti adds.
While some argue that medications like GLP-1s may reduce long-term health costs, many patients are already feeling the weight of rising out-of-pocket expenses.