Prices for 50 Medicines Most Commonly Used by Seniors Increasing By Average of Three Times Inflation, Study Says

Prices for the 50 medications most often prescribed to seniors rose on average more than three times the inflation rate between January 2002 and January 2003, according to a report released July 9 by Families USA, the Newark Star-Ledger reports (Silverman, Newark Star-Ledger, 7/10). Researchers from Families USA and the University of Minnesota's PRIME Institute analyzed data from the Pennsylvania Pharmaceutical Assistance Contract for the Elderly program, the largest outpatient prescription drug assistance program for seniors in the United States, and identified the 50 top-selling prescription drugs for seniors in 2002. Thirty-five of the drugs were brand-name and 15 were generic versions (Families USA release, 7/9). On average, prices for the 50 drugs rose 6% between January 2002 and January 2003, compared with a 1.8% inflation rate, which excludes energy costs, according to the report (Lueck, Wall Street Journal, 7/10). The report notes that 27 of the drugs' prices rose at a rate more than three times inflation and that 37 of the drugs' prices rose at a rate of at least one-and-one-half times inflation (Families USA release, 7/9). Prices for brand-name drugs grew faster than those for generic versions, according to the study. Specifically, prices of 30 brand-name drugs increased an average of 7.1% between January 2002 and January 2003, compared with an average price increase of 2.6% for 15 generic drugs (Newark Star-Ledger, 7/10). Prices for nine generic drugs and three brand-name drugs did not increase during the study period, according to the report (Wall Street Journal, 7/10). The report notes that the following drugs had the fastest-growing price increases last year:

• Claritin, an antihistamine, with a price increase almost 12 times the inflation rate;
  
• Klor-Con 10, a potassium replacement, with a price increase more than 11 times inflation;
  
• Miacalcin, an osteoporosis treatment, with a price increase more than 10 times inflation;
  
• Premarin, an estrogen replacement, with a price increase nearly 10 times inflation;
  
• Atenolol, a generic beta blocker, with a price increase more than nine times inflation; and
  
• Toprol XL, a beta blocker, with a price increase more than nine times inflation (Families USA release, 7/9).
  

Reaction
Families USA Executive Director Ron Pollack said, "What makes it alarming is that seniors, especially those with low incomes, live on fixed incomes that rise at best with inflation and no further. So when prescription drugs rise faster than inflation, it means those prices are increasingly unaffordable" (Heldt Powell, Boston Herald, 7/10). Sen. Debbie Stabenow (D-Mich.) said, "These kinds of numbers are immoral. Medicine is different. It's not like buying a car or tennis shoes or peanut butter." But the Pharmaceutical Research and Manufacturers of America called the report "misleading," saying that it uses undiscounted prices in its calculations. PhRMA officials said that about 5.5 million patients received 14 million prescriptions for free last year through drug company assistance programs, and drug discount programs are available for nearly 50% of all Medicare beneficiaries (Wall Street Journal, 7/10). In a statement, representatives of PhRMA said, "Regrettably, Families USA has decided to continue complaining about prescription medicines, rather than to pitch in and help seniors get the medicines they need. Instead of misleading seniors by referencing only undiscounted prices, it should be helping them gain access to the life-saving, cost-effective medicines they need" (Abelson, New York Times, 7/10).

Medicare Reform Impact?
The report's findings will likely impact the "already heated" debate on a Medicare drug benefit, as lawmakers prepare to reconcile House and Senate Medicare bills (HR 1 and S 1), the Star-Ledger reports (Newark Star-Ledger, 7/10). According to the report, a Medicare beneficiary with $5,200 per year in drug costs and an annual income below $9,000 would pay $3,299 out-of-pocket under the House's proposed Medicare drug benefit and $148 under the Senate's proposal (Wall Street Journal, 7/10). Pollack said, "The bill that recently passed the Senate can provide significant relief for the millions of low-income seniors most in need of help. Unfortunately, the opposite is true about the House-passed bill, which provides very meager help for low-income seniors and will keep drugs unaffordable" (Families USA release, 7/9). Proponents of the Senate bill yesterday used the report to "bolster their position," the New York Times reports (New York Times, 7/10). Sen. Edward Kennedy (D-Mass.) said, "The skyrocketing cost of prescription drugs has tarnished the golden years of many millions of our senior citizens. Too many retirees cannot afford to stay healthy. And today's report from Families USA tells the sad story" (Boston Herald, 7/10). Other Senate Democrats yesterday said they would encourage the conference committee considering the House and Senate Medicare bills to include provisions that would ease consumers' access to generic drugs and provide additional assistance for low-income beneficiaries (Wall Street Journal, 7/10). The complete study is available online. Note: You must have Adobe Acrobat Reader in order to view this report.