BusinessWeek /HealthDay (8/26) reported, “In 2009, the prices of the most popular brand-name drugs used by American seniors rose 8.3 percent, according to AARP researchers who looked at 217 brand-name drugs. They also noted that the price of those medications increased seven percent in 2008, and that the retail price of brand-name drugs climbed 41.5 percent between 2004 and 2009, while the consumer price index rose only 13.3 percent during the same period.” These “increases mean that a person who takes three brand-name drugs now pays an average of $1,900 more each year for medicine. … ‘Something is out of whack here about no increases in the rest of the economy and very substantial (increases) with pharmaceuticals,’ said AARP’s John Rother.” The study pointed out that “a growing number of Americans are turning to generic drugs.”

Branded Drug Price Hikes Considered Routine. Matthew Herper’s writes in his Forbes (8/27) blog, “The AARP is out with its annual survey showing that the prices of commonly used branded drugs increased. This year, those prices, measured at retail, rose 8% even though inflation was negative. … Prices for branded drugs always rise in our healthcare system.” Herper says, “Brands can’t compete with generics. If a cheaper knockoff version is available, it rarely pays to get in a price war. … This seems to be what happened with AARP’s worst offender, Flomax from Boehringer Ingelheim.” Herper concludes, “When AARP trumpets that ‘All but six of the 217 brand name prescription drugs studied by AARP had retail price increases exceeding general inflation last year. Each of the top 25-selling brand name drugs had price increases, with most jumping more than five percent,’ an informed reader should reply, ‘Of course.’”