US drugmakers and seniors clash over price rise claims

WORLD NEWS | LYNNE TAYLOR – MARCH 08, 2012.

US drugmakers have rejected new claims that, even with big declines in generic drug prices, the average annual cost paid by seniors for their prescription drug therapy increased more than $1,000 during 2005-2009.

In 2009, the average annual rate of increase in the retail prices of the 514 prescription drugs most used by enrollees in Medicare – the US federal health programme for seniors and some disabled people – was 4.8%, while the rate of general inflation was -0.3%, according to the seniors advocacy group AARP.

Moreover, during the year the retail prices of brand-name drugs rose 8.3% and those of specialty drugs were up 8.9%, while retail prices for generic drugs decreased 7.8%, says the analysis, which has been produced by the AARP’s Public Policy Institute (PPI). Read More