Healthy Skepticism Library item: 19538

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Report

The Fiscal Policy Institute for USAction
Impossible Choices: Food and Housing or Prescription Drugs?
Fiscal Policy Institute 2000 Oct
www.fiscalpolicy.org/downloads/ImpossibleChoices.pdf

Abstract:

Several recent studies have documented the phenomenal increases in prescription drug prices that have
occurred in recent years. This report builds upon these previous analyses by examining how rising drug prices
have affected the household budgets and living standards of older Americans.
During the 1990s, the price of most prescription drugs commonly used by seniors increased much more than
the increase in the overall cost of living as measured by the Consumer Price Index (CPI). Moreover, the prices of
prescription drugs increased faster than any other basic necessity — food, housing and even medical services. The
average cost per prescription also increased faster than the overall price index and the indices for other basic
necessities.
Over this same period, older Americans, on average, saw some growth in their incomes, but not enough to
keep pace with skyrocketing drug prices. The squeeze on household budgets was even greater for those seniors
whose incomes were stagnant or grew more slowly than the average. Those whose incomes did not grow with the
average and who also happened to be in need of prescription drugs whose prices had increased at two or three or
even more times the rate of inflation were particularly hard pressed. Many older Americans with incomes well
above the poverty level are forced to make difficult choices between the prescription drugs they need and other
necessities of life, from food, clothing and shelter to other medical services and transportation.
Section I of this report (The Basics: What happened to prescription drug prices during the 1990’s?) reviews
the findings of two reports from Families USA and one from the Kaiser Family Foundation that document the
changes that have occurred during various portions of the 1990’s in average retail prices per prescription, average
manufacturer prices for all prescription drugs and for brand name drugs, the average price for seniors’
prescriptions, and the price of the 50 prescription drugs most commonly used by older Americans.