AARP finds largest brand name drug price spike in USA for eight years while general inflation remains near zero

A new AARP Rx Watchdog report finds that US consumers were hit with nearly 10% increases in brand name drug prices over the 12-month period ending in March of this year. The 9.7% jump in manufacturer prices for brand name drugs widely used by people in Medicare was the largest 12-month spike since the AARP, which represents US seniors, began tracking drug prices in 2002. By comparison, general inflation during the same twelve-month period remained nearly flat at 0.3%.

Just last month, pharmacy benefits firm Express Scripts also reported that US prices of branded medicines had risen sharply, noting that, within the traditional therapy classes, these rose 9.1% last year compared to a 7.4% rise in 2008, while for specialty drugs the increase was 11.5%, up from 2008's advance of 9.4% (The Pharma Letter April 23).

PhRMA argues the figures are 'misleading'