US Drug Price Restraint. Where Has It Gone?

In the USA, the restraint in drug price increases publicly promised by many large pharmaceutical companies only a few years ago seems to have vanished, along with the fears of a Hillary Clinton health care reform plan. While there is a difference of opinion about how fast these prices are rising (see, for example, Marketletter February 26), many drugmakers have raised prices well above the 1995 2.5% hike in the Consumer Price Index, accor-ding to Business Week, which also noted that this came despite pledges to limit overall increases to those of the CPI.

The reversion to the old ways came as a direct result of the fact that Washington is no longer watching the drug industry, according to Michael Bronfein, head of a Maryland pharmacy chain. National Association of Chain Drug Stories President Ron Zeigler agreed, adding that prices have climbed since the focus on drug prices diminished with the end of the national health care reform efforts by the Clinton administration.

Washington Climate Changed Retail druggists have been fighting manufacturers in court for more than two years over discounts to managed care buyers, which they call price discrimination. Others point to a different climate in Washington since the Republican wins in the last election.