Healthy Skepticism Library item: 14113

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Goldstein J.
More Scrutiny for Triple-Digit Drug Price Hikes
The Wall Street Journal Health Blog 2008 Aug 8
http://blogs.wsj.com/health/2008/08/08/more-scrutiny-for-triple-digit-drug-price-hikes/?mod=yahoo_hs

Full text:

It’s natural for the price of drugs to rise a little every year, just like the price of everything else. But in the first half of this year, the average wholesale price of 17 drugs jumped 100% or more in a single cost adjustment, USA Today reports (http://www.usatoday.com/money/industries/health/drugs/2008-08-07-costlydrugs_N.htm).

Last year, the price of 26 drugs increased by 100% or more, up from 15 in 2004, the article says, citing figures compiled by researchers at the University of Minnesota.

For comparison, drug prices rose about 7.4% on average last year for more than 1,300 brand-name drugs, USAT reported, based on figures from PBM Express Scripts.

The big jumps have caught Washington’s attention. Congress held a hearing on the issue last week (here’s an ABC News story on that – http://abcnews.go.com/Health/story?id=5442396), and a couple of senators have asked the GAO to look into the large price increases.

Also last week, Abbott agreed to pay up to $27.5 million to settle a lawsuit over a 400% price increase on its HIV/AIDS drug Norvir (http://online.wsj.com/article/SB116778411362865429.html), USAT notes.