Medicare Part D Drug Prices Jumped 3.7% in Last Five Months
“At the same time that the Bush Administration and Congressional leaders are touting the effectiveness of the Medicare drug plans, those plans are quietly raising the prices that they charge,” said Ron Pollack, Executive Director of Families USA. “As a result, seniors will pay more and more — as will America’s taxpayers.”
One of the most significant findings in the report is that, for 19 of the top 20 drugs, changes in the median Part D plan prices were virtually identical to the changes in Average Wholesale Price (AWP) established by the drug manufacturers. “This means,” according to Pollack, “that part d plans are doing essentially nothing to contain the fast-rising prices by the drug industry.”
“When Congress prohibited Medicare from bargaining for cheaper drug prices, it created a huge windfall for the drug companies and unaffordable prices for America’s seniors,” said Pollack. “It is time to correct this and to establish an effective price negotiating system like the VA has achieved.”
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