A study commissioned by AARP shows that wholesale prices for popular brand-name prescription drugs rose an average 7.1% in 2004, more than twice the general inflation rate. That's the biggest increase in the past five years.
Researchers analyzed prices charged by manufacturers on 195 brand-name prescription drugs widely used by Americans 50 and older. The study's authors said such increases are routinely passed on to consumers in retail prices.
Of course the new Medicare prescription drug benefit prohibits the government from negotiating drug prices on behalf of consumers. In light of that, anybody want to guess what next year's increase will be?
In the past five years, manufacturers of 153 brand-name drugs measured in each of those years have raised prices an average of 35.1%--almost three times more than total inflation.
Posted by schwitz at April 13, 2005 07:16 AM