AARP Report Finds Brand Name Drug Prices Continue to Soar: According to a report released today by AARP, pharmaceutical companies have substantially raised prices on 220 brand name prescription drugs most commonly used by people in Medicare Part D since the implementation of the drug benefit in 2006. AARP has studied drug prices since 2002 and reported the findings in a series of Watchdog reports. Today’s report expands on the series by focusing its analysis on those brand prescription drugs most widely used by people enrolled in Medicare Part D.
The Watchdog report, which was produced by AARP’s Public Policy Institute (PPI), found that prices of brand name drugs most commonly used by people in Medicare Part D rose by an average of 7.4 percent in 2007 – nearly two and a half times the rate of general inflation. The report concludes that rising prices threaten consumers by increasing the likelihood of higher insurance premiums and the chance that people will fall into the Medicare coverage gap, and increasing the out-of-pocket expenses of those who find themselves in this “donut hole.”
