Drug prices for US elderly up 6 pct in 2005: study (Reuters)

WASHINGTON (Reuters) - U.S. prices for brand name prescription medications used most by older patients rose an average 6 percent in 2005, outpacing inflation for the sixth year in a row, according to a report released on Monday.

In fact, the price drug makers charge wholesalers and other purchases for branded drugs has risen 40 percent since 1999, compared with inflation, which grew 17 percent, AARP researchers found. In 2005, inflation was 3.4 percent.

The nation's largest consumer group for the elderly reviewed 193 medications mostly for arthritis pain, osteoporosis, heart disease, high blood pressure, and other ailments that affect older Americans.

"Brand name drugs have become substantially less affordable for consumers at the same time they are becoming ever more essential to good medical care," said John Rother, AARP's director of policy and strategy.

Rother said the higher costs can be expected to trickle down to consumers.

"These prices are reflected both in higher premiums for drug coverage as well as in higher out of pocket costs at the pharmacy counter," he said.

An average, older American taking four drugs would have probably paid an extra $189.72 last year, AARP estimated.

The rate of increase was slightly lower in 2005 than in previous years, according to the review.

Among the 24 most used medicines, AstraZeneca Plc's heart drug Toprol XL saw the highest increase of 11.1 percent, while Bristol-Myers Squibb's blood-thinner Plavix saw the smallest increase at 2.9 percent.

A separate review of 75 generic drugs found little price change in 2005. Six medicines, or about 8 percent, cost more while just one drug dropped in price.