0ut-Of-Bounds：Rising Prescription Drug Prices for Seniors.pdfVIP

Out-of-Bounds: Rising Prescription Drug Prices for Seniors A R E P O R T B Y Families USA July 2003 Out-of-Bounds: Rising Prescription Drug Prices for Seniors Families USA Publication No. 03-106 © 2003 by Families USA Foundation Families USA 1334 G Street, NW Washington, DC 20005 Phone: (202) 628-3030 Fax: (202) 347-2417 E-mail: info@ This publication is available online at (). R I S I N G D R U G P R I C E S INTRODUCTION rescription drug expenditures in 2002 continued to be one of the fastest Pgrowing components of health care spending, disproportionately contrib- 1 uting to overall increases in health care costs. Three factors fuel this growth: more drugs are being prescribed; new, higher-priced drugs are prescribed more frequently; and the cost of drugs is risingóso much so, in fact, that approximately one- third of increased drug spending is attributed to rising drug prices.2 Rising prices affect everyone who purchases prescription drugsóem- ployers, insurers, states (which buy drugs for Medicaid beneficiaries and state employees), and, of course, consumers in general. The impact of rising drug prices is particularly harsh on older Americans, who disproportionately rely on prescription drugs and, because Medicare still lacks a drug benefit, disproportionately go without drug coverage. It is estimated that approximately one-third of Medi