The gender gap in healthcare out-of-pocket costs needs bridging

Despite ongoing efforts to address increased costs, out-of-pocket spending on healthcare continues to rise. Higher insurance copays and deductibles, increased medication costs, and rising inflation rates are just a few of the factors contributing to this trend. As a result, millions of Americans find themselves racking up medical debt, deferring critical medical treatment, or neglecting chronic health conditions.

But the cost burden isn’t equal by gender. Many people have heard of the “pink tax,” the pattern of women’s goods and services—from razors to dry cleaning—costing more than the men’s equivalent. But few realize how far this extends beyond store shelves. Across the healthcare spectrum, women are spending significantly more out of pocket on prescriptions and medical treatments.

Recently, I had the opportunity to moderate a panel at SXSW discussing the healthcare pink tax, sharing some new research from GoodRx on the disparities, and learning what actions healthcare leaders are taking to address this. This conversation was eye-opening for our attendees, and served as a reminder that we still have a long way to go in fixing this problem. Doing so won’t just help women, but will also relieve pressure on our healthcare system and support a healthier U.S. population.

The current state of women’s healthcare costs

Each year, women spend billions more than men on out-of-pocket healthcare costs. This latest GoodRx research found that in 2024, women spent nearly 30% more out of pocket on prescriptions than men, totaling over $8.5 billion in additional spending. And the discrepancy is even more pronounced among women aged 18-44, partly due to expenses specific to women, such as those associated with reproductive health.

But women-specific healthcare needs like fertility and birth control aren’t the only drivers of inequitable out-of-pocket costs. Women are also spending more on all-gender conditions. One example is mental health, where women spend 113% more than men on depression medications and 103% more on anxiety treatments.

Once women reach menopause, the economic burden spikes again. AARP found that women spend over $13 billion annually on treating their menopause symptoms, and research from Elektra Health found that those who’ve been diagnosed as menopausal spend 45% more on healthcare costs to treat their symptoms each year than those who are not menopausal.

As Americans age, these gaps begin to close. GoodRx revealed that out-of-pocket healthcare spending among older men and women is more comparable, with women aged 45-64 paying over 35% more in 2024, and women over 65 outspending men by 16.5%. This is likely due to Medicare coverage, similar chronic disease burdens, and reduced reproductive health costs.

How healthcare leaders must take action

As healthcare leaders, the onus is on us to implement solutions that make it easier for women to access healthcare savings and reduce their out-of-pocket spending. Much of the inequity comes from long-standing, outdated cultural understanding and social stigmas around women’s health. Addressing this urgent crisis requires collaboration and systemic changes across the healthcare system, with policymakers, insurers, pharmaceutical manufacturers, healthcare professionals, and many others playing an important role.

Health insurers and employers must take proactive steps to analyze and update benefit design for their members, creating a more equal playing field and reducing the financial burden for women. The government can implement policy reforms, acknowledging the gaps and mandating that healthcare companies look towards more inclusive practices. Researchers should address the data and clinical trial gaps that regularly exclude women in an effort to improve product innovation and outcomes for females. And, collectively, we can all raise awareness and advocate for equality in healthcare.

At GoodRx, we are working on the medication piece of the cost puzzle, helping women at all stages of life access lower prices on essential medications. This includes up to savings on fertility treatments, based on the best available GoodRx price, for both brand-name and generic medications used in every phase of the IVF process. We also introduced our e-commerce platform in October with Opill, enabling GoodRx users to purchase the first over-the-counter birth control pill online. And, just last year, we launched affordability programs for Pfizer’s menopause hormone therapies. Though much more needs to be done, these initiatives are critical in chipping away at the larger cost disparity and access issues.

Lower healthcare costs create healthier communities

Addressing the pink tax in healthcare is our moral and economic imperative. Affordable healthcare doesn’t just support better health and quality of life for women, but has a positive ripple effect on our families, communities, and healthcare system. As with most healthcare reform, real change requires collaboration from all stakeholders in the healthcare system. As a woman and the mom of a daughter, I’m hopeful that we can close this widening gap and improve healthcare access for all women.

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