Each month since December 2005, the consumer advocacy group has tracked the prices of five common drugs used by Medicare beneficiaries in one ZIP code in each of five states—California, New York, Illinois, Florida, and Texas. The data are taken directly from
Medicare beneficiaries might be bearing the brunt of price increases, because they usually are liable for a percentage of the drug's price as a copayment. “We're seeing a lot of inflation,” said Consumers Union Senior Policy Analyst Bill Vaughan in an interview.
The group also found that prices generally rise the most from December to January—after a beneficiary has locked into a plan for the upcoming year. The average increase for the five drugs as a package (Lipitor, Celebrex, Zoloft, nifedipine ER, and Altace) was $369 from December 2007 to January 2008, according to Consumers Union. “Most of these Medicare drug plans are increasing costs [at] double or triple the rate of inflation, which really torpedoes the insurance industry's claim that they are getting the best deal for seniors,” said Mr. Vaughan.