Prescription Drug Prices Rising Faster Than Inflation

Prescription drug prices are rising faster than the rate of inflation according to several reports. Seniors and disabled persons who signed up for the Medicare Part D prescription drug plan are noticing that prices have continued to soar. The wholesale cost of brand-name prescription drugs has gone up nearly 4 percent since January. AARP reports that manufacturer prices went up 3.9 percent from January-March 2006 for nearly 200 of the most commonly used brand name medications, triple the rate of inflation.

ABCNEWS.com reports some drug prices are up even more:

• Celebrex (arthritis medication) - up 6.5 percent
• Ambien (sleep medication) - up 13.3 percent

Why are prices soaring for Medicare D beneficiaries? Medicare Part D gives the power of negotiating lower drug prices to individual plans rather than giving the power to the government (i.e. Medicare). In defense, the Centers for Medicare & Medicaid Services has released a study showing that private drug plans are negotiating large discounts for Medicare beneficiaries. While seniors and people who need prescription drugs to treat chronic illnesses are caught in the crosshairs of the political debate, it is clear drug prices have been going up significantly.

• How To Lower Prescription Drug Costs
• Medicare Part D Prescription Drug Coverage - How Does It Work?
• More About Arthritis Medications

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