How Does Your Brain Score? Take the Staying Sharp Brain Health Assessment

AARP Report Finds Largest Brand Name Drug Price Spike in Eight Years While General Inflation Remains Near Zero

May 17, 2010

AARP Media Relations,, 202-434-2560

AARP Report Finds Largest Brand Name Drug Price Spike in Eight Years While General Inflation Remains Near Zero
Rx Watchdog: consumers face skyrocketing prescription drug prices

WASHINGTON—A new AARP Rx Watchdog report finds consumers were hit with nearly ten percent increases in brand name drug prices over the twelve-month period ending in March of this year. The 9.7 percent jump in manufacturer prices for brand name drugs widely used by people in Medicare was the largest twelve-month spike since AARP began tracking drug prices in 2002. By comparison, general inflation during the same twelve-month period remained nearly flat at 0.3 percent.

“The life-saving drugs Americans need are out of reach for many because of unjustifiable price hikes,” said AARP Executive Vice President John Rother. “Affordable medication can make the difference between a healthy lifestyle and a costly trip to the hospital. Consumers desperately need a competitive prescription drug market that balances the need for innovation with access to less costly medicines.”

The report by AARP’s Public Policy Institute finds that prices for specialty drugs widely used by people in Medicare climbed nearly as quickly—9.2 percent—as brand name drugs. This typically expensive group of drugs, which includes biologic and injected drugs, is often used to treat cancer, multiple sclerosis and other serious chronic conditions. Specialty drug costs can range from $1,000 to more than $20,000 per month.

While brand name drug prices continued to soar, the AARP report finds prices of generic drugs widely used by people in Medicare fell by 9.7 percent between April 2009 and March 2010. The average annual cost of therapy for a person taking three generic medications decreased by $51 during this twelve-month period, a marked contrast to the $706 increase experienced by a person taking three brand name prescriptions

Rother added: “Generic drugs have long been a bright spot among the dark clouds, with prices falling nearly as quickly as brand names are rising. That’s why we encourage every consumer to talk to her doctor about safe, affordable alternatives that could save thousands of dollars each year.”

AARP’s Doughnut Hole Calculator can help people in Medicare’s Prescription Drug Program find lower cost drugs that can save them money and keep them out of Medicare’s dreaded coverage gap. The calculator, available at, finds available options based on their current prescriptions and creates a customized letter to help people start a conversation with their doctor about switching to lower cost drugs.

AARP is also working to lower prescription drug costs and create more competition in the marketplace. The recently enacted health care law will begin closing the gap in Medicare drug coverage in 2011 and provide people in the gap this year with an extra $250 to help pay for their drug costs. The Association has also called on lawmakers to allow for the safe and legal importation of prescription drugs from abroad, bring generic versions of biologic drugs to market faster and allow Medicare to negotiate prescription drug prices directly with drug makers.

The list of prescription drugs analyzed in the AARP Rx Watchdog report is based on the drugs most widely prescribed to people in Medicare Part D. Price changes are measured using changes in the wholesale acquisition cost (WAC) as published by the Medi-Span Price-Chek PC database.

The complete AARP Rx Watchdog report is available at

AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world's largest-circulation magazine with over 35.7 million readers; AARP Bulletin, the go-to news source for AARP's millions of members and Americans 50+; AARP VIVA, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

Search Press Center


If you are an AARP member and not with the press, call 1-888-OUR-AARP or email


For media inquiries, please contact the AARP Media Relations Office at (202) 434-2560 or


Facebook: AARP Media Relations

Twitter: @aarpmedia

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.


Member Benefits AT&T Wireless Cell Phone

Members save 10% on the monthly service charge of qualified AT&T wireless plans.

Member Benefit AARP Regal 2

Members pay $9.50 for Regal ePremiere Tickets purchased online.

Walgreens 1 discount membership aarp

Members earn points on select Walgreens-brand health and wellness products.

Member Benefits

Join or renew today! Members receive exclusive member benefits & affect social change.