AARP Monitors Drug Prices
Editor's Note: The following are highlights from AARP's Rx Watchdog Report for October/November 2005 and was
submitted by AARP Illinois. To see a full copy of this report visit www.aarp.org/health/affordable_drugs or call 1-888-687-2277 for more information.
ARP Rx Watchdog project monitors the drug industry's pricing habits through a series of reports produced by the AARP Public
Policy Institute in conjunction with the PRIME Institute of the University of Minnesota. Each quarterly report presents an updated
analysis of price changes using a variety of measures - average changes over 12 months, quarterly changes, and changes by top
selling products, manufacturer and therapeutic category.
Sharp Hikes in Medications for Common Conditions
The prices manufacturers charge for brand-name prescription drugs continue to increase, on average, at more than double the rate
of inflation according to a new pricing report released by AARP. The report finds that on an annual basis, from July 2004 to June
2005, the price of 193 brand-name drugs commonly used by older Americans grew at an average rate of 6.1 percent, more than double
the general inflation rate of 3 percent over the same period.
While the prices manufacturers charge for brand-name drugs continue to grow much faster than the general inflation rate, the
difference between the two is narrower than for the 12 months ending in December 2004. For that time period, inflation was 2.7
percent while the average increase for brand-name drugs was 7.1 percent.
Consumers Pay More for Daily Pills
Of the 193 brand-name drugs included in the study, 187 are used to treat chronic conditions. Manufacturers increased their price for
these drugs, on average, by $32.38 during the 12- month period ending in June 2005. Assuming that increase is passed on to the
consumer, the typical older American, who takes three prescription drugs a day, paid $97 more for a year's worth of therapy at the
end of June 2005 than he or she paid at the end of June 2004.
Increases by Therapeutic Category
Twelve of the 30 therapeutic categories of brand name drugs had average manufacturer price increases that were three or more times
the general inflation rate of 1.5 percent during the first half of 2005. The two highest percentage increases were seen in
therapeutic categories containing drugs used in the treatment of high blood pressure - cardio-selective beta blockers and ACE
inhibitors. Both categories had an average manufacturer price increase of 6 percent. The therapeutic category that includes popular
cholesterol lowering drugs such as Lipitor and Zocor had an average price increase of 4 percent during the same period.
The Highest Percentage Increases
Of the 193 drugs included in the study, 142 had a price increase during the first six months. Fifty-eight products had price
increases of more than 5 percent during this time and three had increases of 10 percent or more- Atrovent 18 mcg/act, an aerosol
inhaler manufactured by Boehringer Ingelheim; Ambien 5 mg, a sleeping aid manufactured by Sanofi Pharmaceuticals; and Pletal 100 mg,
a drug used to increase blood flow to the legs manufactured by Otsuka American Pharmaceuticals. |
