November 2015
Research Report
Stephen W. Schondelmeyer
PRIME
Institute University of Minnesota
Leigh Purvis
AARP Public Policy Institute
Trends in Retail Prices of Specialty Prescription Drugs Widely Used by Older Americans, 2006 to 2013
TRENDS IN RETAIL PRICES OF SPECIALTY PRESCRIPTION DRUGS WIDELY USED BY OLDER AMERICANS, 2006 TO 2013 i
AARP’s Public Policy Institute informs and stimulates public debate on the issues we face as we age. Through research, analysis, and dialogue with the nation’s leading experts, PPI promotes development of sound, creative policies to address our common need for economic security, health care, and quality of life.The views expressed herein are for information, debate, and discussion, and do not necessarily represent official policies of AARP.
ii TRENDS IN RETAIL PRICES OF SPECIALTY PRESCRIPTION DRUGS WIDELY USED BY OLDER AMERICANS, 2006 TO 2013
Table of Contents
EXECUTIVE SUMMARY ........................................................................................................................................... INTRODUCTION ..................................................................................................................................................... FINDINGS ..................................................................................................................................................................
2.1. Specialty Price Trends for Most Widely Used Prescription Drugs ................................................3 2.2 Annual Trends in Price Changes for Most Widely Used Specialty Prescription Drugs by FDA Approval Process ...............................................................................................................................9 2.3. Eight-Year Cumulative Retail Price Changes for Most Widely Used Specialty Prescription Drugs, 2006 to 2013 ..................................................................................................................................12 2.4. Four Out of Five Widely Used Specialty Drugs Increased in Price More than General Inflation in 2013 ........................................................................................................................................14 2.5. Retail Price Changes for Most Widely Used Specialty Prescription Drugs by Manufacturer .16 2.6 Retail Price Changes for Most Widely Used Specialty Prescription Drugs by Therapeutic Category ..............................................................................................................................................................18
CONCLUDING OBSERVATIONS ............................................................................................................................APPENDIX A: DETAILED METHODOLOGY AND DESCRIPTION OF RETAIL PRICE DATA ...
Overview .............................................................................................................................................................22Defining Brand, Generic, and Specialty Pharmaceuticals ......................................................................23Creating the Market Basket of Drugs ...........................................................................................................23Monitoring Retail Drug Prices .......................................................................................................................25
Retail Data Description ................................................................................................................................25
Calculating Annual Price Changes for Each Drug ...................................................................................26Calculating Aggregate Average Price Changes across Multiple Drugs ................................................27Calculating Average Price Changes across Multiple Drugs for Years before 2011............................28Calculating Annual Cost of Therapy for a Drug Product .......................................................................29Defining Manufacturer ....................................................................................................................................29Defining Therapeutic Category ......................................................................................................................29
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