Drug Prices Surpass Inflation Rate
Posted on: Thursday, 18 August 2005, 09:00 CDT
Wholesale prices for the brand-name prescription drugs widely used by older Americans rose at more than twice the rate of inflation during the year that ended March 31, AARP says.
The price charged by manufacturers climbed 6.6 percent for a sample of 195 drugs. That is down from the 7.1 percent increase in the year that ended Dec. 31 but still well ahead of the 3 percent general inflation rate, the organization for people 50 and older said in a report.
"We are very disappointed that brand-name manufacturers have failed to keep their price increases in line with inflation, and we will continue to educate our members and the public about how best to find the most affordable prescription drugs to suit their needs," AARP Chief Executive William Novelli said.
The Pharmaceutical Research and Manufacturers of America accused AARP of using "fuzzy math."
Prescription drug prices have risen less than overall medical costs, the trade group said.
Ken Johnson, the group's vice president, added that starting in January, senior citizens will save money on medicines by enrolling in Medicare's new prescription drug program.
The study by AARP's Public Policy Institute and the University of Minnesota found price increases for 110 brand-name drugs sampled.
For a typical older person taking three prescription drugs daily, the increase for the year ended March 31 translates to an extra cost of $144.15 per year, if they use brand-name products and the full price increase is passed along to the consumer, according to AARP.
Looking at the first three months of this year, the study found that the biggest price increase, 6.1 percent, was for insulin- sensitizing drugs for diabetics. Tied for second with 5.9 percent price increases were two types of blood pressure drugs, angiotensin II receptor antagonists and calcium channel blockers.
The single largest increase was 9.5 percent for Combivent, an aerosol drug.
The researchers also looked at generic prescription drugs. Overall costs were up 0.7 percent in a check of 75 drugs for the year ended March 31.
Source: Buffalo News
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