Prescription Drug Pricing in the United States: Drug Companies Profit at the Expense of Older Americans

Publication

Prescription Drug Pricing in the United States: Drug Companies Profit at the Expense of Older Americans

Abstract

The Special Investigations Division of the House Committee on Government Reform investigated perscription drug price discrimination and the impact on the elderly population. The investigation found older Americans who pay for their own drugs are charged more than the favored customers of drug companies such as health maintenance organizations and the federal government. Senior citizens were found to pay twice as much for drugs, which is a price differential that is six times greater than the average for consumer goods. Lastly, the Special Investigations Division found that pharmaceutical manufacturers were primarily responsible for the discriminatory practices that victimize older Americans who are least able to afford their prescriptions.