According to a just-released AARP-sponsored report, of the top 25 Medicare Part D expenditures for drugs (rankings based on 2006 data-sets), New Merck makes four -- and each recorded between 6.3 percent and 10.8 percent manufacturer price increases in 2009 -- before reform took effect. [A sincere H/T Ed Silverman at Pharmalot -- for the report.]
Note that all four are mature brands for Merck -- and thus shouldn't rise more than the overall inflation rate, in an otherwise rational economy. Inflation was less than one-half of one percent for 2009 (as measured by CPI).
So -- what's wrong with this picture, then? Plenty [See the full AARP report -- a PDF file]:
Fosamax® | 70 mg tablet | Osteoporosis Agent | Up 6.7% in 2009 | over 22 times overall inflation rate. . . .Singulair® | 10 mg tablet | Respiratory Agent | Up 9.7% in 2009| over 32 times overall inflation rate. . . .
Zetia® 10 mg tablet | Cholesterol Agent | Up 10.8% in 2009| 36 times overall inflation rate. . . .
Zocor® 20 mg tablet | Cholesterol Agent | Up 6.3% in 2009| 21 times overall inflation rate. . . .
The takeaway? Just as many of us long suggested they would, pharmaceutical manufacturers increased selling prices whenever possible, in advance of the coming pricing pressure -- driven by health care reform efforts. Perhaps HHS, Medicare and Medicaid ought to suggest that 2011 reimbursement levels will be driven off of 2008 prices, not 2009 or 2010 prices. [Some of my earlier background on the topic.] Just a thought.
2 comments:
How wonderful. I can only hope Wally World (aka WalMart) will still be able to give myself (& others) a discount since they sell Singulair for $20 less than all the other pharmacies. I just love shopping there for my drugs.
I would hope so, as well. Thanks for stopping by.
Namaste
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