A new study from the AARP group points to increased drug costs putting extra strain on the elderly in the United States. AARP released information that brand name drug prices went up by an average of 7.4% last year. This increased price far exceeds the current national interest rate.
AARP points to a possibility in the prices rising due to the Medicare added drug benefit released in January 2006. The manufacturer’s wholesale pricing is one of the most significant factors in the retail price of prescription drugs. While there has been little outcry over these price increases, the government is picking up most of the tab for the cost differential.
The good news is that many seniors are purchasing the generic forms of the more expensive brand name drugs, offering them some price relief during this time period of rising drug costs. Government economists suggest that approximately 2/3 of all drugs purchased are generic in form.
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