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The AARP is calling for measures to hold down brand-name drug prices after releasing a report showing the cost of the prescription medications most commonly used by older Americans rose an average 8.3 percent in 2009 despite record-low inflation. According to the report, drug prices have risen steadily over the last five years, with retail prices for the most popular brand-name drugs increasing 41.5 percent, while the consumer price index rose just 13.3 percent. The report notes that all but six of 217 brand-name prescription drugs had retail price increases greater than the rate of inflation in 2009, far outstripping increases for other consumer goods. The AARP Rx Price Watch Report warns that many older Americans rely on brand-name medication to maintain their health, and that the rising costs are forcing them into the dreaded Medicaid coverage gap known as the "donut hole" sooner. "Brand-name retail prices have been accelerating year-to-year even when inflation has been non-existent in the rest of the economy," John C. Rother, executive vice president for policy and strategy for the AARP, said in an interview with the New York Times. Rother called on Congress...more
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