AARP Report: Drug Prices Keep Climbing

WASHINGTON -- The AARP says prices for the prescription drugs used most frequently by older Americans rose 3.4 percent during the first three months of the year -- almost three times the general inflation rate.

The average annual rate of increase rose from 6.9 percent for the 12 months ending in December 2003 to 7.2 percent for the 12 months ending in March 2004.

"Since at least 2000, drug prices have risen steadily. The first three months of 2004 looks like more of the same," said AARP board member Doug Holbrook. "This is an outrage."

The AARP looked at the wholesale prices for 197 brand-name medications sold by prescription between 2000 and 2003. The organization found that manufacturers' wholesale prices had steadily increased and, for each year, exceeded the rate of general inflation.

Some of the recent price increases have been particularly sharp. The report found that the cost of the widely used blood thinner Plavix jumped 7.9 percent during the first quarter.