By Susan Heavey
WASHINGTON — Prices of medicines used by older Americans for chronic conditions such as arthritis and high cholesterol are rising even as new federal drug coverage has been rolled out to help make prescriptions more affordable, two separate studies released on Tuesday showed.
Researchers at Families USA found insurers participating in the Medicare drug benefit program raised overall prices 3.7 percent for the top 20 drugs used by the elderly since enrollment began in November.
Separately, the AARP found prices for nearly 200 of all drugs most used by the elderly — not just under Medicare — rose 3.9 percent from January through March. The AARP is the largest group representing older Americans.
The drug benefits program, which began in January, allows insurers to offer Medicare beneficiaries drug coverage with government oversight.
Participants are locked into a plan until annual open enrollment, although plans are allowed to change prices any time. Many patients were automatically transferred into the program, but about 11 million signed up individually.
“At the same time that the Bush administration and congressional leaders are touting the effectiveness of the Medicare drug plans, those plans are quietly raising the prices that they charge,” said Ron Pollack, director of Families USA.
The Centers for Medicare and Medicaid Services and an insurance industry group had no immediate comment on the studies.
The Pharmaceutical Research and Manufacturers of America, disputed the AARP study, saying data shows drug prices are not rising any more than other medical costs.
Medicare officials have said competition between companies offering the drug benefit would help lower co-payments and annual fees.
According to Families USA, prices for three Pfizer Inc drugs rose at least 6 percent — painkiller Celebrex, cholesterol drug Lipitor and Alzheimer’s disease therapy Aricept.
Drugs in the study that did not have price hikes included the diuretic generic drug furosemide, generic metoprolol tartrate for high blood pressure, and Pfizer’s antidepressant Zoloft, which could soon face generic competition.
OUTPACING INFLATION
AARP, which supported the Medicare drug benefit but has continued to rally against higher costs, said manufacturers initially seemed to keep price hikes in line with inflation.
“The first quarter 2006 results represent a disturbing reversal of that trend. It remains to be seen whether this is a one-time change or the beginning of a pattern of an increasing rate of price increase,” according to the group, which has been surveying drug costs since 2000.
AARP also found prices rose 6.2 percent for the 12 months ending March 2006 — an average annual increase of $59.57 compared with general U.S. inflation, which rose 3.5 percent.
For the typical older patient taking four prescriptions each day, medicines cost $238.28 more for those 12 months, compared with $189.72 more the previous year.
“It is simply unsustainable for American consumers to continue footing the bill for large increases in drug prices,” AARP Chief Executive Officer Bill Novelli said in a statement.
Among generic drugs, the AARP found prices dropped an average of 0.1 percent for the year ending March 2005.
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