Keywords: US, Drug pricing, GAO, House of Representatives

US Committee leaders call for GAO analysis of recent prescription drug price increases

Article | 19 November 2009

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Following recent allegations in the New York Times, and rebuttals by the US research-based pharmaceutical industry (The Pharma Letter November 18), leaders of the US House Ways and Means and Energy and Commerce Committees have sent a letter to the Government Accountability Office (GAO) requesting an expedited report on recent trends in prescription drug pricing.

The letter, authored by Representative Charles Rangel (Democrat, New York), Chairman of the House Ways and Means Committee, Rep Henry Waxman (Democrat, California), Chairman of the Energy and Commerce Committee, Rep Pete Stark (Democrat), Chairman of the Ways and Means Health Subcommittee, and Rep John Lewis (Democrat, Georgia), Chairman of the Ways and Means Oversight Subcommittee, comes after recent studies and the New York Times report indicated that the pharmaceutical industry may be artificially raising prices in anticipation of the passage of health reform legislation that could reduce prescription drug prices or price growth.

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The letter also requests that the GAO submit a proposal to ensure ongoing monitoring of pharmaceutical manufacturer pricing practices and to analyse which products accounted for the biggest price changes. It also notes that previous GAO findings have indicated that annual price increases for brand pharmaceuticals were higher just prior to passage of major legislation extending coverage for prescription drugs.

In their letter to the GAO, the group of Democrats said: “Any price gouging is unacceptable, but anticipatory price gouging is especially offensive. We request that the GAO prepare on an expedited basis a report that analyzes recent trends in prescription drug pricing. In addition, we request that you prepare a proposal to ensure ongoing monitoring of pharmaceutical manufacturer pricing practices, and periodically report to the Congress on your findings.”