[Ip-health] Families USA report on US drug price increases

[Mike Palmedo]

Full Report:
http://www.familiesusa.org/assets/pdfs/Big-Dollars-Little-Sense.pdf
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Press Release:
http://www.familiesusa.org/resources/newsroom/press-releases/medicare-part-=
d-plans-raised.html

Medicare Part D Plans Raised Their Prices for Top Drugs Sold to Seniors
- Part D Drug Prices Increased by 3.7 Percent over the Past Five Months

Families USA
June 20, 2006
Contact:
Dave Lemmon, Director of Communications
Geraldine Henrich-Koenis, Press Secretary
202-628-3030

Washington, D.C. =96 Over the past five months, virtually all Medicare
(Part D) plans raised their prices for the top drugs prescribed to
seniors, according to a report issued today by the health consumer
organization Families USA. The report, based on pricing data submitted
by the plans to the federal government, contradicts the Bush
Administration=92s assertions that the new Medicare drug program is
effectively moderating rising drug costs.

The Families USA report examines Part D plan prices for the top 20 drugs
prescribed for seniors. It found that:

* 100 percent of Part D plans raised their prices for Zocor (40 mg), a
cholesterol-lowering drug.

* Almost 99 percent of Part D plans raised their prices for Fosamax (70
mg), a drug used to treat osteoporosis.

* More than 97 percent of the plans raised their prices for Lipitor (10
mg), a cholesterol-lowering drug.

* More than 96 percent of the plans raised their prices for Actonel (35
mg), Toprol XL (50 mg and 100 mg), and Xalatan (0.005%), drugs used for
osteoporosis, high blood pressure, and glaucoma, respectively.

* More than 94 percent of the plans raised their prices for Celebrex
(200 mg), Nexium (40 mg), and Norvasc (5 mg), drugs used to treat pain,
gastrointestinal problems, and heart problems, respectively.

* More than 92 percent of plans raised their prices for Aricept (10 mg),
and 89 percent raised their prices for Plavix (75 mg), drugs used for
Alzheimer=92s disease and stroke, respectively.

=93At the same time that the Bush Administration and congressional leaders
are touting the effectiveness of the Medicare drug plans, those plans
are quietly raising the prices that they charge,=94 said Ron Pollack,
Executive Director of Families USA. =93As a result, seniors will pay more
and more=97as will America=92s taxpayers.=94

According to the report, only the prices for the generic drugs
furosemide (40 mg) (a diuretic) and metoprolol tartrate (50 mg) (a drug
for high blood pressure), and the brand-name drug Zoloft (50 mg) (an
antidepressant) were not raised by a majority of the Part D plans.

The report examined Medicare plan price changes from mid-November 2005
(when enrollment in the new program began) to mid-April 2006. During
that time, the median price for the top 20 drugs rose by 3.7 percent.
Three of the drugs, Celebrex (200 mg), Lipitor (10 mg), and Aricept (10
mg), rose by 6 percent or more.

One of the most significant findings in the report is that, for 19 of
the top 20 drugs, changes in the median Part D plan prices were
virtually identical to the changes in Average Wholesale Price (AWP)
established by the drug manufacturers. =93This means,=94 according to
Pollack, =93that Part D plans are doing essentially nothing to contain the
fast-rising prices by the drug industry.=94

The Families USA report also compared Part D plan prices with the prices
negotiated by the Department of Veterans Affairs (VA). According to the
analysis, for every one of the top 20 drugs prescribed to seniors, the
lowest price charged by any Part D plan was higher than the lowest price
negotiated by the VA. The median price difference as of mid-April 2006
was 46 percent.

Among the biggest variations between prices negotiated by the VA and
those established by Medicare plans were the following drugs:

* For Zocor (20 mg), the lowest annual VA price in mid-April was
$127.44, while the lowest Part D plan price was $1,275.36, a $1,147.92
difference, or 901 percent.

* For Protonix (40 mg), a gastrointestinal agent, the lowest annual VA
price was $214.45, while the lowest Part D plan price was $1,110.96, a
$896.51 difference, or 418 percent.

* For Fosamax (70 mg), the lowest annual VA price was $265.32, while the
lowest Part D plan price was $727.92, a $462.60 difference, or 174 percent.

* For Xalatan (0.005%), the lowest annual VA price was $279.84, while
the lowest Part D plan price was $555.96, a $276.12 difference, or 99
percent.

=93When Congress prohibited Medicare from bargaining for cheaper drug
prices, it created a huge windfall for the drug companies and
unaffordable prices for America=92s seniors,=94 said Pollack. =93It is time=
 to
correct this and to establish an effective price negotiating system like
the VA has achieved.=94

For a copy of the report and to review the methodology, please visit our
Web site at www.familiesusa.org.