FOR IMMEDIATE RELEASE Monday, June 24, 2002 see the full report (pdf)

CONTACT: Jennifer Laudano Kati Anderson (202) 628-3030

POPULAR PRESCRIPTION DRUGS FOR SENIORS ROSE THREE TIMES THE RATE OF INFLATION LAST YEAR

Washington, DC-The prices of the 50 most prescribed drugs for senior citizens rose, on average, by nearly three times the rate of inflation last year, according to a new report released today by Families USA.

The study analyzed price increases for the 50 most commonly prescribed drugs for seniors for the last year (January 2001-January 2002), for the past five years, and for the past ten years. The report found that last year, nearly three quarters (36 out of 50) of these drugs rose at least one-and-one-half times the rate of inflation, while over one-third (18 of 50) rose three or more times the rate of inflation. The drugs that experienced the largest price increases last year were the following:

• metoprolol rose almost eight times the rate of inflation.
• Demadex and Premarin rose nearly seven times the rate of inflation.
• Plavix rose more than six times the rate of inflation.
• Zestril, Lipitor, and Combivent rose more than five times the rate of inflation.

"Senior citizens live on fixed incomes based, at best, on inflation and yet year after year the price of their prescription drugs continue to skyrocket at rates that far exceed inflation," said Ron Pollack, executive director of Families USA, "There is no reasonable basis for these alarming price increases, which continue to make prescription drugs unaffordable for too many seniors."

Families USA also compared price increases of generic versus brand-name drugs in its report. The report showed that brand-name drugs rose four-and-one-half times faster than the rate of price increases for generic drugs-8.1 percent versus 1.8 percent.

• Ten of the 50 most prescribed drugs for seniors are generics. The average annual price for those drugs was $375. Nine of those 10 drugs did not increase in price at all.
• The 40 brand-name drugs on this list had an average annual price of $1,106-three times that of generics. All but three of the brand-name drugs rose in price last year.

"Seniors benefit when there are more generic drugs on the market, said Pollack. "Generics are not only cheaper, but they are generally rising in price at much slower rates than brand-name drugs."

The study also revealed that these price increases were not a one-year phenomenon. Forty-two of the 50 drugs were on the market for the five-year period from January 1997 to January 2002, and they rose, on average, more than twice the rate of inflation during those five years. In addition, during that period of time, 32 of those drugs increased their prices on at least five occasions. During those years, the following drugs increased in price at least nine times:

• Claritin increased in price 13 times.
• Synthroid increased in price 11 times.
• Demadex increased in price 10 times.
• K-Dur 20 and Premarin both increased in price nine times.

The report showed that even drugs that have been on the market for 10 years or more continue to rise at a rate much faster than inflation. Of the 50 most commonly prescribed drugs for seniors, 20 have been on the market for the full 10-year period. On average, these drugs have been on the market for 22 years. The prices for the majority of these 20 drugs increased considerably faster than the rate of inflation in the last decade.

• More than half (12 of 20) rose at least two times the rate of inflation.
• Almost half (9 of 20) rose at least three times the rate of inflation.
• Five of those drugs rose at least four times the rate of inflation.
• Three of these drugs-Synthorid, Lanoxin, and Premarin-have been on the market since the 1960s, yet their prices have increased by roughly four times the rate of inflation in the last 10 years.

"Pharmaceutical companies like to sugar coat the pain of high drug prices by claiming that they have to regain their investment in research and development. This claim is nonsense since drugs that have been on the market for 10 years or more continue to rise in price at rates that far exceed the rate of inflation," said Pollack.

This Families USA study, Bitter Pill, was released as debates on prescription drug proposals heat up on Capitol Hill. The House of Representatives will debate prescription drug proposals later this week, and the Senate is expected to take up this issue next month.

"Senior citizens cannot afford to wait any longer for a prescription drug benefit in Medicare," said Pollack. "Congress needs to act quickly to provide relief for the millions of seniors who struggle with high prescription drug costs."

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Families USA is the national organization for health care consumers. It is nonprofit and nonpartisan and advocates for high-quality, affordable health care for all Americans.