AARP’s first analysis of
retail drug prices finds 8.3% jump
WASHINGTON (August 25, 2010)
—AARP’s first-ever analysis of retail price trends of prescription drugs
finds prices for widely used brand name drugs skyrocketed in 2009,
climbing more than eight percent even as general inflation remained
negative. The AARP Rx Price Watch report findings align with the
Association’s earlier Rx Watchdog reports, which found similarly large
increases in manufacturer prices for brand name drugs.
The brand name drug industry has
criticized AARP’s past drug pricing reports for analyzing manufacturer
list prices that do not reflect discounts and rebates often provided by
drug makers. However, the new Rx Price Watch report indicates that such
discounts do little to protect consumers from growth in brand name
prices. While manufacturer prices for widely used brand name drugs
increased 9.3 percent in 2009, retail prices for the same drugs climbed
nearly as quickly at 8.3 percent.
“For the first time, we know that
brand name drug retail prices are growing just as quickly as
manufacturer prices,” said AARP Executive Vice President John Rother.
“These are increases that hit the wallets of every American, whether
through their own health care bills or the costs of programs like
Medicare and Medicaid.”
All but six of the 217 brand name
prescription drugs studied by AARP had retail price increases exceeding
general inflation last year. Each of the top 25-selling brand name
drugs had price increases, with most jumping more than five percent.
Prostate drug Flomax (0.4 mg capsules) saw the largest increase in this
top-selling group, climbing 24.8 percent during 2009. Flomax first
began facing generic competition in early 2010.
Among brand name manufacturers,
products of two drug makers—Boehringer Ingelheim and BTA
Pharmaceuticals—had average increases of over 15 percent among the drugs
studied by AARP. Notably, manufacturers Merck, Allergan and Alcon had
average increases of less than five percent.
Rother added: “Prescription drugs
improve the lives of millions of Americans. But unless something is
done to bring down their skyrocketing price increases, life-saving
medicines will be out of reach for too many. The health care law made
some progress by closing the Medicare doughnut hole, but Congress and
the industry must bring more competition and transparency to the
marketplace.”
AARP is working to lower
prescription drug costs and create more competition in the marketplace.
The health care law enacted earlier this year will begin closing the gap
in Medicare drug coverage in 2011 and provide people who fall into the
gap this year with an extra $250 to help pay for their drug costs. The
Association has also called on lawmakers to allow for the safe and legal
importation of prescription drugs from abroad, bring generic versions of
biologic drugs to market faster and allow Medicare to negotiate
prescription drug prices directly with drug makers.
AARP’s Doughnut Hole Calculator
can help people in Medicare’s Prescription Drug Program find lower cost
drugs that can save them money and keep them out of Medicare’s dreaded
coverage gap. The calculator, available at www.aarp.org/doughnuthole,
finds available options based on their current prescriptions and creates
a customized letter to help people start a conversation with their
doctor about switching to safe, lower cost drugs.
The list of prescription drugs
analyzed in the AARP Rx Price Watch report is based on the drug products
most widely prescribed to people in Medicare Part D. Price changes are
measured using retail prices as reported by the Thomson Reuters
MarketScan® Research Databases.
AARP is a nonprofit, nonpartisan
organization that helps people 50+ have independence, choice and control
in ways that are beneficial and affordable to them and society as a
whole. AARP does not endorse candidates for public office or make
contributions to either political campaigns or candidates. We produce
AARP The Magazine, the definitive voice for 50+ Americans and the
world's largest-circulation magazine with over 35.1 million readers;
AARP Bulletin, the go-to news source for AARP's millions of members and
Americans 50+; AARP VIVA su Segunda Juventud, the only bilingual U.S.
publication dedicated exclusively to the 50+ Hispanic community; and our
website, AARP.org. AARP Foundation is an affiliated charity that
provides security, protection, and empowerment to older persons in need
with support from thousands of volunteers, donors, and sponsors. We
have staffed offices in all 50 states, the District of Columbia, Puerto
Rico, and the U.S. Virgin Islands.
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