Government
Drug prices rise while inflation falls, report says
NEWS IN BRIEF — Posted Nov. 30, 2009
An AARP report concludes that prices for brand-name and specialty prescription drugs widely used by seniors continue to rise substantially, despite a negative total price trend for all consumer goods and services.
The report, released Nov. 16 by AARP's Public Policy Institute, concludes that brand-name drug prices have increased 9.3% since October 2008, with a 10.3% increase for specialty drugs. This is despite the rate of general inflation dipping by 0.3% during the same period. In contrast, average manufacturer prices for generic drugs fell by 8.7% during that time.
"This report confirms [that] drugmakers are raising their prices and enjoying windfall profits, even as the rest of the economy is suffering," said AARP Executive Vice President John Rother. "The pharmaceutical industry should be embarrassed when it sees its own price increases put side by side with the general inflation rate."
Note: This item originally appeared at http://www.ama-assn.org/amednews/2009/11/30/gvbf1130.htm.
