Study Finds
Drug Costs Are Soaring for Elderly
By
REED ABELSON
New York Times, July 10, 2003
As
Congress tries to come up with a bill providing a Medicare drug benefit
that it can send to President Bush, a new study says prices for the 50
drugs most prescribed for the elderly rose last year at more than three
times the rate of inflation.
The
study, which was issued yesterday by Families USA, a consumer group, shows
"how important it is to offer significant subsidies to the
lowest-income seniors," Ron Pollack, the group's executive director,
said in a telephone interview.
As
many as half of the elderly do not have insurance for drugs for some part
of the year, he said, because they either lack coverage or have exceeded
the limits on their policies, which frequently cap the amount the insurer
must pay.
Prices
for the 50 drugs increased an average of 6 percent, compared with a rise
of 1.8 percent in the Consumer Price Index, excluding energy prices, the
study said. More than half of the drugs increased by three or more times
the inflation rate, while a quarter stayed the same.
Over
the years, drug prices have consistently outpaced inflation, said Mr.
Pollack, who noted that these increases are particularly hard on the
elderly, who are often on fixed incomes.
An
elderly person without coverage buying Lipitor, Vioxx, Synthroid and
Fosamax would pay nearly $3,000 a year for all four drugs, Families USA
said.
The
study met with sharp criticism from the pharmaceutical industry, which
argued that many elderly people were able to buy drugs at discounted
prices. "Regrettably, Families USA has decided to continue
complaining about prescription medicines, rather than to pitch in and help
seniors get the medicines they need," the Pharmaceutical Research and
Manufacturers of America, a trade association, said in a statement.
"Instead of misleading seniors by referencing only undiscounted
prices, it should be helping them gain access to the life-saving,
cost-effective medicines they need."
Many
drug companies also offer programs that help seniors get free or
discounted drugs, the association said.
Claritin,
the popular allergy drug made by Schering-Plough, was among the drugs that
have gone up in price the most in the last year, the study said, with its
price rising nearly 12 times the rate of inflation.
The
drug, which is now available without a prescription, has since fallen
steeply in price and could fall further as more generic manufacturers
offer cheaper versions.
While
Schering-Plough would not comment on its pricing for individual drugs, a
spokesman said the company was committed to offering free or discounted
medicine to help people who could not afford its drugs.
With
Congress now trying to reach a compromise between the Senate and House
bills, some proponents of the Senate version, which calls for more aid to
low-income elderly people, used yesterday's study to bolster their
position. Under the Senate bill, a low-income person would pay $74
out-of-pocket for those four drugs, compared with $1,084 under the House
bill, according to Families USA.
Senator
Edward M. Kennedy of Massachusetts, who was among the Senate Democrats who
recently sent a letter to President Bush calling for certain provisions in
the final legislation, cited the report in a statement yesterday. Medicare
beneficiaries "need a bill that provides prescription drug coverage
for all seniors, but with extra help for lower income retirees, with low
premiums and low co-payments," he said.
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