20 Leading US Drugs' Price Increases Slammed

Price rises for the 20 most commonly-prescribed drugs in the USA were 60% higher than the rate of inflation last year, says a report by the Families USA Foundation, despite the pledge of about 17 major drug companies to keep average price rises for their entire product lines at or below the inflation rate.

The cost of living rose 2.7% in 1994, while prices of the 20 top-selling brand-name drugs were up 4.3% on average. The basket of 20 drugs used most often by the elderly increased 4% on average. Phyllis Torda, the Foundation's director of health policy, said the data showed policymakers should not conclude that the problem of prescription drug costs for consumers had been solved.

The report criticized the method used by companies to keep their pledge on overall prices, because the most commonly-prescribed drugs showed greater-than-average increases. Hospitals and Health Maintenance Organization discounts do not benefit consumers who buy drugs at the pharmacy, Ms Torda said. Consumers who pay the full cost for their medication account for 44%, the largest share of the market, and do not get discounts. Pharmacy Benefit Managers and Medicaid, which do get discounts, account for 38% of the market. private insurance, representing 19% of spending, often does not include a prescription drug plan, said the report. The high prices fall hardest on the elderly, with each senior spending about $483 annually on prescription drugs.