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From the AARP Website.
If you think your prescription drugs seem to cost you more each year, you are right. On average, prices charged by drug manufacturers to wholesalers for widely used brand name prescription drugs in 2003 increased three times the rate of inflation. The average annual increase in drug manufacturers' prices for widely used brand name drugs rose from 4.1% in 2000 to 6.9% in 2003, while the annual rate of general inflation fell from 3.3% in 2000 to 2.2% in 2003. Over the four-year period, this translates into an average cumulative price increase of over 25 percent.
In dollar terms, the average annual increase in the cost of prescription drug therapy due to higher manufacturers' prices for widely used brand name drugs nearly doubled between 2000 and 2003, rising from $33.76 to $60.38. For a typical older American (who takes three drugs) this would likely translate to an average annual spending increase of $101 in 2000, rising to $181 in 2003, if these prices were passed on to consumers.
| Rank by Sales |
Drug Product (Pack Size) |
Manufacturer |
Avg Annual % Change
in Manuf. Price,
2000-2003 |
| 1 |
Fosamax 70 mg tab (4) |
Merck |
5.6% |
| 2 |
Lipitor 10 mg tab (90) |
Pfizer |
6.0% |
| 3 |
Plavix 75 mg tab (90) |
BMS |
7.8% |
| 4 |
Lipitor 20 mg tab (90) |
Pfizer |
4.8% |
| 5 |
Prevacid 30 mg cap DR (100) |
TAP |
5.2% |
| 6 |
Celebrex 200 mg cap (100) |
Pfizer |
4.1% |
| 7 |
Protonix 40 mg tab (90) |
Wyeth |
5.4% |
| 8 |
Norvasc 5 mg tab (90) |
Pfizer |
4.6% |
| 9 |
Plavix 75 mg tab (30) |
BMS |
7.8% |
| 10 |
Norvasc 10 mg tab (90) |
Pfizer |
0.0% |
| 11 |
Nexium 40 mg cap (30) |
AstraZeneca |
4.1% |
| 12 |
Flomax 0.4 mg cap (100) |
Abbott |
7.3% |
| 13 |
Actonel 35 mg tab (4) |
P&G Pharm |
4.8% |
| 14 |
Xalatan 0.01 % sol (2.5) |
Pfizer |
5.4% |
| 15 |
Aricept 10 mg tab (30) |
Eisai |
4.2% |
These dramatic findings are part of an important new AARP study, Trends in Manufacturer Prices of Brand Name Prescription Drugs Used by Older Americans, 2000 through 2003, written by David Gross of AARP's Public Policy Institute (PPI), Professor Stephen W. Schondelmeyer of the University of Minnesota, and Susan Raetzman, also of PPI.
The report presents the results of a study of changes in manufacturers' prescription drug prices from 2000-2003 for the nearly 200 brand name prescription drugs most widely used by Americans age 50 and older. This report compares price changes to the rate of general inflation and from one year to the next. It focuses on the price that drug manufacturers charge wholesalers because that is a substantial component of the final retail price. A change in the price the drug manufacturers charge to wholesalers generally results in a similar percent change in the price that you, the consumer, pay.
Percentage Change in Wholesale Acquisition Cost Related to Inflation, 2000-2003.
*For drugs not on the market for the entire four-year period, average annual 2000-2003 change is calculated as change begining with the month of product introduction. Year refers to change from previous year. Prepared by the AARP Public Policy Insitute and the PRIME Institute, University of Minnesota, based on data found in MediSpan PriceCheck PC (Indianapolis, IN: Wolters Kluwer Health Inc., March 2004).
The fact that most of these price increases tend to be far greater than the growth in Social Security income, which is pegged to the rate of general inflation, and greater than the growth in median income for people 50-64 implies a substantial burden on Americans, particularly older ones who tend to use more prescription drugs on a per capita basis. The difficulties consumers already face in meeting their medical needs will only increase if this trend in prices continues.
AARP, through its Public Policy Institute, will monitor and regularly report on these changes. This will help keep you informed and remind drug manufacturers of the need to keep prices in line with inflation.
http://www.aarp.org/legislative/prescriptiondrugs/rxprices/Articles/
a2004-05-24-drugprices.html
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