AARP Rx Watchdog Report; brand-name drug prices exceed inflation once again

As expected, price increases for brand-name drugs commonly used by older Americans exceeded the rate of inflation. Yet the key driver of increased drugs costs remain the introduction and utilization of new brand-name drugs. Americans (young or old) that wish to get the best value from their drug dollar need to look for generic alternatives. Nearly every major drug category has generic versions of different brand-name drugs that provide similar, if not equal or better, value than the brand-name drugs with no generic versions. For example, patients could ask their doctor about using generic versions of :

• Mevacor, Pravachol or Zocor instead of Lipitor
• Prilosec (or even Prilosec OTC) instead of Prevacid, Aciphex, or Protonix
• Prozac, Paxil or Zoloft for a variety of brand-name antidepressants

This is only a small sample of the generic alternatives that can truly help increase the value of drug therapy. Ask your doctor or pharmacist for recommendations. Your health plan or prescription drug plan also may provide lists of recommended alternatives.

"During the 12-months ending September 2006, the prices manufacturers charge wholesalers and other direct purchasers for 193 brand-name drugs widely used by older Americans continued to rise much faster than the general inflation rate. The manufacturer’s price increase for brand-name drugs, on average, was 6.2 percent—more than one-and-ahalf times the inflation rate of 3.7 percent. During the same 12-month period, the wholesale list prices set by manufacturers for 75 generic drugs widely used by older Americans decreased, on average, by 0.7 percent. "