Transforming the healthcare sector is no small task, but one that more and more innovators and entrepreneurs are committed to tackling. In January, I attended CES, the annual trade show organized by the Consumer Technology Association, and had a chance to check out current trends and new products. I saw a concerted effort to use technology and AI to improve clinical decision-making and better personalize treatments.
While this is important work, there’s a disconnect between these efforts and what most consumers care about. Few innovations are tackling the most basic needs of the American people—like helping them afford the care they need today. Take medications, for example. According to the Centers for Medicare & Medicaid Services (CMS), prescription medication spending increased 8.4% to $405.9 billion in 2022, and will only continue to climb.
Innovative tech is not translating to lower medical bills. And the “solutions” in place now aren’t cutting it. We need to make healthcare more affordable as soon as possible. Here are three ways business and healthcare leaders can make meaningful progress in the shorter term.
Improve cost transparency
We have the option to compare and shop for most goods and services. Looking to book a trip, buy a TV, or get a new car? It’s easy to find your options and the prices available. Searching for healthcare? Well, now it gets complicated.
While the larger industry is experimenting with streamlined pricing models that promise some level of transparency, the reality is most Americans don’t know the true cost of their treatment until after the fact. People agree to tests, labs, and medications without any understanding of the out-of-pocket costs. Even when given an insurance estimate upfront, the margin of error can be extreme.
This leads to people taking cost-saving measures such as skipping doses or appointments, delaying a prescription refill, or even taking less medication than prescribed. In 2023, GoodRx research showed that 39% of people made a change to their medication regimen because of cost. It doesn’t have to be this way.
We should make things easier on patients so they can be in control of their health and have more insights into the cost of care. Today, healthcare professionals are often the most important players in informing a patient about the best care options within their budget. This shouldn’t be the only way people can get pricing information. Giving them the tools they need to make health decisions will lead to greater accessibility, affordability, and accountability in their overall health journey.
Address healthcare deserts
Our research also found that more than 80% of counties in the U.S. don’t have the proper access to the services they need to maintain their health. In fact, more than 40% of counties are considered pharmacy deserts, a term used when most people must drive more than 15 minutes to reach a pharmacy. This is unacceptable. Not only is healthcare too expensive—it’s too hard to access. And recent pharmacy chain bankruptcies and closures are sure to make this problem worse.
Unfortunately, because of systemic barriers, including racism, healthcare deserts are more likely to affect racial and ethnic minorities—those who often face additional barriers like lower income, limited internet access, and lack of insurance. These barriers only further widen disparities in health outcomes.
We need to find better solutions. We need to support specialists in remote areas. Where there are limited offerings, we need to use technology to connect experts with patients through telehealth services. There is a need here, and we can find new ways to address it.
Increase digital literacy
The healthcare system is complex and challenging to navigate for most people, but those who don’t understand digital tools or don’t have access to computers, smartphones, or Wi-Fi face an even steeper challenge. In fact, many recent studies show a link between digital literacy and health outcomes.
Consumers need simple, easy-to-use solutions to help them access and afford basic care. For example, mobile apps and smartphone-based health solutions are everywhere, but one-in-10 Americans don’t own a smartphone. Income, race and ethnicity, and age play a big part in who can or can’t access or understand technology, and we can’t forget about these people as we continue innovating.
There are many ways we can help. We must offer a variety of solutions and options, like telehealth platforms that allow patients to call in versus join via a smartphone app. With prescription medications, one way we do this is by providing consumers with physical GoodRx cards they can bring to the pharmacy with them.
We should also provide detailed instructions or one-on-one tutorials when rolling out any new technologies, like patient portals or wearables. With any of these tools, easy-to-understand user interfaces are critical, and we can’t build products with only the tech-savvy in mind. Breaking down these tech barriers will help people be healthier.
We don’t have to tackle all these issues at once
There are many things we need to change or improve within the healthcare system, but it doesn’t all need to happen overnight. We can confront specific challenges to improve healthcare access and affordability for consumers.
At GoodRx, we are focused on prescription cost savings. By doubling down on making prescriptions more affordable, we’ve saved consumers $70 billion, ultimately helping them fill at least 184 million prescriptions they otherwise may not have been able to afford. Money saved through healthcare spending, both in pocketbooks and across the industry, can be better spent elsewhere—on everything from basic necessities to new innovations. That is something we can all get behind.
Doug Hirsch is cofounder and chief mission officer at GoodRx.