Report: Drug Prices Are Putting Major Pressure on the Affordability of Health Insurance in Michigan
Blue Daily
| 2 min read
A recent article from Crain’s Detroit Business found skyrocketing prescription drug prices are putting immense pressure on the affordability of Michigan health insurance premiums.
Read the full Crain’s article here. (Subscriber access required)
The report underscores the financial pressure Michigan insurers are under—driven largely by skyrocketing prescription drug prices. In 2024, Blue Cross reported a $1.03 billion loss, with $2.7 billion in added pharmacy costs over just two years. That’s an average increase of $529 per member, and it’s one of the top reasons many Michigan families are seeing premiums rise in 2025.
What the Report Highlights
The Crain’s article highlights several key points that underscore the direct impact of skyrocketing prescription drug prices and the enormous profits drugmakers are raking in at the expense of our members and customers. It also details the innovation of Blue Cross to find ways to combat these unsustainable increases.
- Pharmaceutical companies are profiting more than any other part of the health care system. Global profits reached $1.6 trillion in 2023—surpassing the GDP of many countries.
- Drugmakers continue to influence the market toward new, expensive products spending millions on TV advertising and direct-to-consumer tactics — even as lower-cost biosimilars become available.
- Blue Cross Blue Shield of Michigan is innovating to protect our members and customers. That includes switching to biosimilars, like we did with Humira and Stelara, which have save millions for our members and customers and signing outcome-based contracts for gene therapies and other expensive treatments. Blue Cross is also one of the founding members of Civica Rx, a nonprofit generic drug manufacturer, which has seen promising results.
Why It Matters
At Blue Cross, we stand for affordability. That means responsibly stewarding every premium dollar we collect.
In 2024, 21 cents of every dollar we collected in health insurance premiums went to prescription drugs.
The Crain’s report highlights the immense pressure of prescription drug prices on affordability, the need for regulation and the innovation of Blue Cross, on behalf of our members and customers to find better solutions.
Learn more about our commitment to making health care more affordable at mibluedaily.com/affordability.
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