ASHP ON DRUG PRICES IN 1991

In 1991, the American Society of Hospital Pharmacists "led the way in documenting and exposing the budget-busting side effects of the Medicaid drug rebate provisions of the Omnibus Budget Reconciliation Act of 1990," which took effect last year, according to the ASHP annual report for the year.

Sharp increases in drug prices became an even bigger issue in the public policy issue last year, says the report. "While we supported the intent of the original provisions, which was to reduce costs for medicaid programs, we predicted early on that an unintended side effect of the legislation would be a dramatic rise in pharmaceutical prices for organized health care facilities, price increases that must ultimately be passed on to consumers."

Although the ASHP worked throughout the year with members of Congress and the Health Care Financing Administration to minimize the damage of the legislation, the truth of its original prediction was confirmed by the ASHP's own research and by reports from the Office of the Inspector General of Health and Human Services and the General Accounting Office, says the annual report. According to the ASHP's own survey, drug prices for the average health care institution showed an increase of 14%-20%, which is 6%-12% above the Consumer Price Index inflation rate for pharmaceuticals.