A new prescription drug price report issued by the AARP says manufacturer prices for brand name prescription drugs continue to rise at an average rate that greatly outpaces general inflation.
The Rx Watchdog Study found prices for nearly 200 of the most commonly used brand name drugs rose 6.1 percent over the course of a 12-month period, while the rate of inflation increased by just 3 percent.
"State, federal and family health care budgets are being stretched to the max, and sadly sometimes beyond," said Bill Novelli, AARP CEO. "It is simply unsustainable for American consumers to continue footing the bill for endless increases in drug prices."
One silver lining for consumers is that manufacturers of 75 widely used generic drugs continue to hold the line, the report found. Manufacturer prices for all of these products were unchanged during the second quarter of 2005.
The sharpest price increases were for the drug Atrovent, which rose at 18.6 percent, and Ambien, which climbed 14.4 percent for the first six months of 2005. Among the best sellers, Procter and Gamble's Actonel rose 7.5 percent, Lilly's Evista jumped 6.2 percent and AstraZeneca's Toprol XL increased 6 percent.
"Consumers will be facing higher gas and energy costs this winter. With less disposable income, drug price increases will certainly have a chilling effect on the health and well being of millions struggling to afford the drug treatments they need," Novelli said.
He said AARP is fighting for new laws in New York to require drug companies to disclose how much money they spend marketing new, high-cost, drugs to physicians and to allow the state to bulk purchase all of its drugs, passing the savings onto those who lack drug coverage.
"In New York this winter, home heating costs are expected to jump nearly 50 percent, leaving many people with less disposable income available to cope with out-of-control drug price increases," said Lois Aronstein, AARP New York State director. "This is why we need new laws in New York to help people save money on their drugs and ensure prescriptions are given based on what the patients need, rather than a sales person's persuasiveness."
