AARP Study Finds Brand Name Drug Companies Increased Prices Above Rate of Inflation on 90 Percent of Best-Selling Part D Medications
In case you missed it, AARP released a new report Monday detailing how drug price increases that exceed the rate of inflation are costing the Medicare Part D program billions of dollars in additional spending.
According to the report, the Part D program spent approximately $77 billion on the top-50 most sold brand name drugs in 2019. The costs for the same drugs, had they been capped to grow at the rate of inflation, would have been $60.5 billion, a more than $16 billion difference.
And between 2015 and 2019 the Part D program spent $289.1 billion on these top-50 drugs — compared to a $250.8 billion price tag had there been an inflation cap. The difference: An extra $38.3 billion in spending for taxpayers going to line the pockets of Big Pharma.
The report also found brand name drug companies hiked prices at rates exceeding inflation on nearly 90 percent of the same top-50 drugs — underscoring the urgency for policymakers in Washington to crack down on Big Pharma’s egregious pricing and anti-competitive practices.
Read more on how Big Pharma’s price hikes are unconnected to clinical improvements HERE.
Read more on how Big Pharma continued to hike drug prices during the pandemic HERE.
Read more on market-based solutions to hold Big Pharma accountable and lower prescription drug prices HERE.