Pharmaceutical companies have substantially raised prices on 220 brand-name prescription drugs most commonly used by Medicare Part D beneficiaries since the implementation of the drug benefit in 2006, according to a report released March 5 by AARP.
The analysis 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.
The average treatment cost nearly doubled from $80 per year per prescription in 2002 to $151 in 2007. The study found brand-name drug prices increased far greater than general inflation since 2002, with dramatic spikes since 2006, the period when Medicare Part D was implemented. Read the report.
