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Drugmakers Hike Prices Ahead of Reform

9% rise, in a year of falling prices, will add $10B to drug spending

By Jane Yager,  Newser Staff

Posted Nov 16, 2009 7:08 AM CST
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(Newser) – Bracing for health care reform, drug companies have been raising prices at the fastest rate in almost 20 years—even as they pledge to support Washington's goal of cutting the nation's drug bill. The pharmaceutical industry is scrambling to get the price base as high as possible before legislation to curb drug spending kicks in, critics tell the New York Times.

Wholesale prices of brand-name prescription drugs rose 9% in the past year—a rate strikingly at odds with the falling consumer price index. "Price adjustments for our products have no connection to health care reform," says a Merck spokesman. Health care experts counter that this year's price hikes alone will cancel out savings from drugmakers' recent agreement with the White House and Senate to trim $8 billion a year from US drug costs.

Containers of the drugs Cialis and Cymbalta, made by Eli Lilly & Co., are pictured on shelf at Nora Apothecary Pharmacy in Indianapolis, Monday, April 20, 2009.
Containers of the drugs Cialis and Cymbalta, made by Eli Lilly & Co., are pictured on shelf at Nora Apothecary Pharmacy in Indianapolis, Monday, April 20, 2009.   (AP Photo/Darron Cummings)
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COMMENTS
Showing 3 of 10 comments
Derni
Nov 17, 2009 12:51 PM CST
Gee..its so nice they did this to drugs thjat have no generic form..and you think they REALLY give a DAMN about the AMERICAN people..Screw drug companies and the Gov't that lets them get away with this..where's Congress when you really need them
BlueAyez
Nov 17, 2009 3:57 AM CST
It's very simple to resolve these fee and product increases -- make them retroactive to the beginning of the fiscal year in the reform bill.
schmidtkoff
Nov 16, 2009 5:46 AM CST
this is so typical. until the politicians get out of bed with the lobbyists and start to represent the we the people mantra this will continue to continue. whether it is pharma, banking and credit or health care. these big influential monopolies will not, without legislation to prevent them from their attempt to disempower the public at large, will go on..but we have a choice. we can make demands and fight to lower script costs, cancel credit cards and find better alternatives, call for the end of monopolies on the health care industry. why can i shop for good rates on auto insurance, credit cards etc. and not prescription drugs or health care policies?

 
Merck • pharmaceutical companies • drug companies • prescription drugs • health care reform • pharmaceutical industry

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