U.S. Democrats demand analysis of drug price hikes

Senior Democrats in the U.S. House of Representatives are seeking a government investigation into recent price increases of brand-name prescription drugs, as Congress finalizes health reform overhaul.

The leaders of the House Ways and Means and Energy and Commerce Committees, in a letter to the Government Accountability Office (GAO), said they would probably seek another analysis of price trends after reform measures are implemented.

The letter was sent late Tuesday after the nation’s top lobbying group for elderly Americans criticized an estimated 9 percent hike in prices for some of the most-widely used medicines.

Drugmakers “may be artificially raising prices for certain pharmaceutical products in expectation of new reforms,” wrote Charles Rangel and Henry Waxman, the respective chairmen of the House Ways and Means Committee and the House Energy and Commerce Committee.

“Any price gouging is unacceptable, but anticipatory price gouging is especially offensive,” the letter said.

Lawmakers asked the non-partisan GAO to compare drug price increases against the Consumer Price Index and to analyze which specific drugs accounted for the biggest price changes. The report will give Congress a “benchmark of drug manufacturer pricing activity just prior to passage” of a Democratic-written healthcare reform bill, the lawmakers said.

Industry analysts have largely expected Pfizer Inc, Merck & Co Inc and other manufacturers to boost prices as many popular brands near the end of their patent protection, triggering cheaper generic alternatives.

The lawmakers also asked the GAO to prepare a proposal to continually monitor drug prices on behalf of Congress.

Under the healthcare reform bill approved by the House, drugmakers would provide $80 billion in savings and rebates over 10 years. Senate Democratic leaders were expected to introduce final language in that chamber’s bill as early as Wednesday evening.

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By Susan Heavey

WASHINGTON (Reuters)