Retail Drug Prices Increase 25% in 5 Years, Report Finds

Pfizer Inc.’s cholesterol-lowering medicine Lipitor and pain pill Celebrex led a 25% increase in retail drug prices nationwide from 2000 to 2004, a government report shows.

Prescription drug costs already are the fastest-growing portion of healthcare spending nationwide, rising to 10.7% of health spending from 5.8% in 2003. Some lawmakers are concerned that the federal government will be on the hook for the rising prices when the national health insurance program for the elderly, Medicare, starts paying for some medications in 2006.

The report by the Government Accountability Office found that the price of a 30-day supply of 96 drugs used by older Americans rose 24.5% from January 2000 through December 2004. Twenty of the medications accounted for almost two-thirds of the increase, according to the GAO, Congress’ investigative arm.

“The drug with the largest effect on the price index was Lipitor 10 mg, which accounted for 6.6% of the total increase,” the report read.

Lipitor is the world’s bestselling prescription drug at $10.9 billion.

The analysis took into account the usual price paid by uninsured patients at retail pharmacies, the average price paid to drug makers by wholesalers and the list prices manufacturers suggest for sales to pharmacies.