corner
Healthy Skepticism
Join us to help reduce harm from misleading health information.
Increase font size   Decrease font size   Print-friendly view   Print
Register Log in

Healthy Skepticism Library item: 17026

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: Electronic Source

Silverman E
GAO Finds ‘Extraordinary’ Drug Price Hikes
Pharmalot 2010 Jan 12
http://www.pharmalot.com/2010/01/gao-finds-extraordinary-drug-price-hikes/#more-20841


Full text:

Between 2000 and 2008, the prices for 321 different brand-name drugs soared between 100 percent and 499 percent, and the actual number of ‘extraordinary’ price hikes more than doubled each of those years, according to a report issued by the General Accountability Office. More than half were in just three therapeutic classes – central nervous system, anti-infective, and cardiovascular.
Most of the price hikes were for brand-name meds costing less than $25 per unit. Depending on the condition treated and length of treatment, the full cost could total several thousand dollars. A lack of therapeutically equivalent drugs, both generics and other brand-name drugs, may contribute to extraordinary price increases, according to the report. And the limited availability may be due to patent protection and market exclusivity, and the size of the market for a given drug.
Another reason cited – mergers, which reduce competition. For example, the rights to four case-study drugs, which weren’t named, were obtained by a drugmaker, and two of these drugs had an extraordinary price increase shortly after the rights to the drugs were purchased, the GAO found.
The report emerges just as the House and Senate attempt to reconcile versions of health care reform, which has drawn criticism that a deal to win support from the pharmaceutical industry failed to force drugmakers to respond to rising costs (background here). Whether drugmakers will face added pressure to contribute more than the agreed-upon $80 million to fund the bill remains to be seen.
“Another way of viewing this is that an increasing number of companies are recognizing that they have been underpricing their drugs. Given the upward trend in prices of new drugs, re-pricing of older drugs should also be expected,” writes Aidan Hollis, an economics professor at the University of Calgary, in an email. “The government should be asking – what is the mechanism that we can rely on to control drug pricing in an environment with widespread insurance?”

 

  Healthy Skepticism on RSS   Healthy Skepticism on Facebook   Healthy Skepticism on Twitter

Please
Click to Register

(read more)

then
Click to Log in
for free access to more features of this website.

Forgot your username or password?

You are invited to
apply for membership
of Healthy Skepticism,
if you support our aims.

Pay a subscription

Support our work with a donation

Buy Healthy Skepticism T Shirts


If there is something you don't like, please tell us. If you like our work, please tell others.

Email a Friend








Far too large a section of the treatment of disease is to-day controlled by the big manufacturing pharmacists, who have enslaved us in a plausible pseudo-science...
The blind faith which some men have in medicines illustrates too often the greatest of all human capacities - the capacity for self deception...
Some one will say, Is this all your science has to tell us? Is this the outcome of decades of good clinical work, of patient study of the disease, of anxious trial in such good faith of so many drugs? Give us back the childlike trust of the fathers in antimony and in the lancet rather than this cold nihilism. Not at all! Let us accept the truth, however unpleasant it may be, and with the death rate staring us in the face, let us not be deceived with vain fancies...
we need a stern, iconoclastic spirit which leads, not to nihilism, but to an active skepticism - not the passive skepticism, born of despair, but the active skepticism born of a knowledge that recognizes its limitations and knows full well that only in this attitude of mind can true progress be made.
- William Osler 1909