Even though federal and state governments and payors are making sweeping moves to contain the cost of healthcare, the prices of brand name prescription drugs are increasing rapidly, according to a Wall Street Journal news report.
Investment bank Barclays Capital analyzed the prices of 130 drugs and found the average price increased approximately 6.9 percent in 2010. The price increases cover a wide range of drugs, including blood-pressure medication Benicar. The price for Benicar jumped 29.3 percent from last year, according to the news report.
The steep increase is tied to drug companies' efforts to maintain high revenue in the face of looming loss of patent protection and increasingly high rebates for health insurers. Even though drug companies have defended price increases — claiming the reports are misleading because they don't account for the rebates doled out to insurers — industry experts say the price increases have drastically outpaced rebates for health plans, according to the news report.
Read the news report about brand-name drug prices.
Read other coverage about medical supplies:
- Healthcare Organizations Struggle to Invest in Stronger Medical Equipment for Heavier Patients
- AAMI Project to Determine State of Medical Technology Management
- Michigan Hospitals Launch "Buy Detroit" initiative, Purchase Supplies Locally
Investment bank Barclays Capital analyzed the prices of 130 drugs and found the average price increased approximately 6.9 percent in 2010. The price increases cover a wide range of drugs, including blood-pressure medication Benicar. The price for Benicar jumped 29.3 percent from last year, according to the news report.
The steep increase is tied to drug companies' efforts to maintain high revenue in the face of looming loss of patent protection and increasingly high rebates for health insurers. Even though drug companies have defended price increases — claiming the reports are misleading because they don't account for the rebates doled out to insurers — industry experts say the price increases have drastically outpaced rebates for health plans, according to the news report.
Read the news report about brand-name drug prices.
Read other coverage about medical supplies:
- Healthcare Organizations Struggle to Invest in Stronger Medical Equipment for Heavier Patients
- AAMI Project to Determine State of Medical Technology Management
- Michigan Hospitals Launch "Buy Detroit" initiative, Purchase Supplies Locally