Drug Costs and the Governmental Accountability Office Study of 2009
The new federal sweeping health care laws passed on March 26, 2010.
It is a month after the fact, and just about everyone will agree that the subject of health care is still front and center.
Individuals with North Carolina insurance plans and those looking for health insurance quotes share the same concerns about the quality and affordability of future care for themselves and their loved ones.
While the law is now passed, there are still rules being written now which will have unpredictable outcomes.
In addition, many have posed good questions about the wide-ranging and long-term economic effects of inflation in the drug industry.
While a great deal is not yet known, our articles will focus on some of what we do know.
Everyone realizes that an enormous amount of health care spending goes toward prescription and other medications.
The most frequently prescribed drugs are those for the cardiovascular system, cholesterol reduction, pain relief, depression and diabetes.
The Governmental Accountability Office (GAO) published a report in December 2009 entitled "Report to Congressional Requesters BRAND-NAME PRESCRIPTION DRUG PRICING.
According to the report, the GAO examined "extraordinary price increases for brand-name prescription drugs.
" The study examined price increases of 100 percent or more which occurred at a single point in time between 2000 and 2008.
They found that the drugs with huge leaps in price consisted of 416 of brand-name drug products and represented 321 different drug brands.
The study conclusions reported, "The number of extraordinary price increases each year more than doubled from 2000 to 2008 and most of the extraordinary price increases ranged between 100 percent and 499 percent.
" Examples of commonly used drugs found in the GAO report, include Actos, Avandia, Claritin, Cipro, DIovan, Effexor, Flexeril, Lipitor, Lunesta, Lyrica, Motrin, Vioxx, Paxil, Pepcid, Phenergan, Prilosec, Synthroid, Zocor, Toprol, Valium, Valtrex, and Zoloft.
While the GAO reported on price increases made earlier in the decade, on November 16, 2009, the New York Times article entitled, "Drug Makers Raise Prices in Face of Health Care Reform" reported, "In the last year, the industry has raised the wholesale prices of brand-name prescription drugs by about 9 percent, according to industry analysts.
" "By at least one analysis, it is the highest annual rate of inflation for drug prices since 1992.
" The N.
Y.
T.
points out that this growth in drug costs is completely at odds with the Consumer Price Index, which fell by 1.
3 percent for the year.
The article cites a typical increase, "Singulair, the blockbuster asthma drug, at a wholesale price of $1,330 a year - $147 more than last year.
Singulair is now selling at retail, on drugstore.
com, for nearly $1,478 a year.
With financial burdens like these, one can see the long-term value and security provided through a number of different plans.
Blue Cross Blue Shield of North Carolina's (BCBSNC's) HMO and POS products have earned Excellent Accreditation from the National Committee for Quality Assurance (NCQA).
North Carolina's first and only NCQA accredited PPO plan is with BCBSNC, which also has products like Blue Cross Blue Shield of North Carolina's (BCBSNC's) Medicare Supplement Plans (including Plan D), Blue Medicare, Blue Advantage®.
Blue Options HSA plans are excellent choices.
Direct Marketing has it all!
It is a month after the fact, and just about everyone will agree that the subject of health care is still front and center.
Individuals with North Carolina insurance plans and those looking for health insurance quotes share the same concerns about the quality and affordability of future care for themselves and their loved ones.
While the law is now passed, there are still rules being written now which will have unpredictable outcomes.
In addition, many have posed good questions about the wide-ranging and long-term economic effects of inflation in the drug industry.
While a great deal is not yet known, our articles will focus on some of what we do know.
Everyone realizes that an enormous amount of health care spending goes toward prescription and other medications.
The most frequently prescribed drugs are those for the cardiovascular system, cholesterol reduction, pain relief, depression and diabetes.
The Governmental Accountability Office (GAO) published a report in December 2009 entitled "Report to Congressional Requesters BRAND-NAME PRESCRIPTION DRUG PRICING.
According to the report, the GAO examined "extraordinary price increases for brand-name prescription drugs.
" The study examined price increases of 100 percent or more which occurred at a single point in time between 2000 and 2008.
They found that the drugs with huge leaps in price consisted of 416 of brand-name drug products and represented 321 different drug brands.
The study conclusions reported, "The number of extraordinary price increases each year more than doubled from 2000 to 2008 and most of the extraordinary price increases ranged between 100 percent and 499 percent.
" Examples of commonly used drugs found in the GAO report, include Actos, Avandia, Claritin, Cipro, DIovan, Effexor, Flexeril, Lipitor, Lunesta, Lyrica, Motrin, Vioxx, Paxil, Pepcid, Phenergan, Prilosec, Synthroid, Zocor, Toprol, Valium, Valtrex, and Zoloft.
While the GAO reported on price increases made earlier in the decade, on November 16, 2009, the New York Times article entitled, "Drug Makers Raise Prices in Face of Health Care Reform" reported, "In the last year, the industry has raised the wholesale prices of brand-name prescription drugs by about 9 percent, according to industry analysts.
" "By at least one analysis, it is the highest annual rate of inflation for drug prices since 1992.
" The N.
Y.
T.
points out that this growth in drug costs is completely at odds with the Consumer Price Index, which fell by 1.
3 percent for the year.
The article cites a typical increase, "Singulair, the blockbuster asthma drug, at a wholesale price of $1,330 a year - $147 more than last year.
Singulair is now selling at retail, on drugstore.
com, for nearly $1,478 a year.
With financial burdens like these, one can see the long-term value and security provided through a number of different plans.
Blue Cross Blue Shield of North Carolina's (BCBSNC's) HMO and POS products have earned Excellent Accreditation from the National Committee for Quality Assurance (NCQA).
North Carolina's first and only NCQA accredited PPO plan is with BCBSNC, which also has products like Blue Cross Blue Shield of North Carolina's (BCBSNC's) Medicare Supplement Plans (including Plan D), Blue Medicare, Blue Advantage®.
Blue Options HSA plans are excellent choices.
Direct Marketing has it all!
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