GAO: "Extraordinary" increases in drug prices over the past decade

[steven johnson]

I don't think everyone is going to be making a big sacrifice with healthcare reform. It seems that hospitals, drug companies and insurance companies are largely getting a pass.

WASHINGTON (Reuters) - Prices for hundreds of brand-name drugs have soared since the beginning of the decade, especially those that treat depression, infections and heart disease, according to a U.S. government report on Monday.

The nonpartisan General Accountability Office said it found "extraordinary price increases" for 321 brand-name drugs, with prices jumping by 100 percent to 499 percent - and in a few cases by more than 1,000 percent.

The number of drug price increases more than doubled from 2000 to 2008 with most drugs maintaining their higher prices over time, the investigative arm of Congress said.

GAO's findings came as lawmakers work to finalize Senate and House versions of legislation overhauling the nation's healthcare system. Some critics say both proposals are too generous to the pharmaceutical industry and fail to do enough to rein in costs.

"Extraordinary" increases in drug prices: report

[PDJane]

1. The US is the only country in the developed world

without some kind of drug cap. In fact, third world nations have some kind of drug price cap as a rule, too.

[HuckleB]

2. I wonder how the "Medicare Prescription Drug, Improvement, and Modernization Act" affected prices

That was such a massive give away to the drug companies. I did find that the article was more nuanced than the headline, however.

"The GAO itself noted that the number of products that saw increases - as many as 416 products when different doses and formulations were factored in - represent only about half of 1 percent of all brand-name drug products.

It also said about half of the price hikes were seen with products that are repackaged in smaller amounts for use by hospitals or physicians."


I did wonder a bit at the start of the piece, because many mental health drugs have dropped in price via going generic, including Zoloft, Celexa, Adderall XR, and others. It seems like the "me too" business practice of the drug companies has led them to a few dead ends.