Prices of Drugs for Elderly Said to Far Outrun Inflation

    For the third consecutive year, the average prices of dozens of brand-name prescription drugs widely used by elderly Americans have risen more than twice as fast as general inflation, according to a survey to be released today by the advocacy group AARP.

    The 12-month average increase for 195 drugs was 6.6 percent, or more than double the 3.1 percent rise in the Consumer Price Index that tracks general inflation.

    Also in line with the trend in recent years, there was little inflation – less than 1 percent – in the average price of generic drugs, AARP said.

    Consumer groups, including AARP, which represents older Americans, have been trying to persuade Congress and the Bush administration to use Medicare’s vast purchasing power to bargain directly with drug makers on prices. Under the 2003 law that set up the new drug benefit, Medicare is currently barred from such negotiating, but must accept prices negotiated by insurers, drugstore chains and pharmacy benefit managers – which individually lack Medicare’s clout.

For the complete article go to http://www.truthout.org/issues_05/081605HB.shtml.