Are Rising Drug Prices Inflationary or Justified?

The American Association of Retired Persons (AARP) represents the interests of persons 50 and older. The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the nation’s leading pharmaceutical makers. As you might guess, these two groups express widely differing views of the ongoing increase in prices for prescription drugs.

AARP Says: Studies find rising prescription drug prices and rising voter concern about affordability.

Brand name prescription drug prices rose 6.3 percent in 12 months, outpacing the 3.8 percent inflation rate during the same period. In contrast, prices of generic drugs most commonly used by 50+ year olds rose only 0.4 percent during same period.

Voters ages 42 and over, the most likely to cast ballots in November, defined prescription drug affordability as a major concern. Although millions in Medicare are now saving with the help of their Medicare drug plans, those in the coverage gap are paying on their own and know how expensive their medications have become. In addition, nearly seven million Americans ages 50-64 have no health insurance, are paying full freight, and need relief.

PhRMA Says: AARP's allegations about drug inflation are inaccurate and proposed solutions are reckless.

Studies show prescription drug spending increases are at their lowest level in a decade, and price increases are in line with overall medical inflation since 2003 passage of Medicare Part D drug coverage law.

AARP's allegations about pharmaceutical inflation are inaccurate. Even worse, the solution the group recommends for improving patient access to medicine – importing drugs from other countries – is downright reckless. With importation, there could be a huge surge of counterfeit drugs into the United States and the losers would be the many patients taking fake or sub-standard products.

Also See: Extra Help For Medicare's Prescription Drug Plan