Prescription drug prices rise faster than inflation

There must be something wrong with this picture. While drug companies earn record profits each year and spend billions on television advertising (particularly for Viagra), they also keep raising the prices of prescription drugs. In the richest country in the world, one out of five Americans does not have health insurance, and therefore, no access to prescription drugs. Even those who do have insurance, they have to find cheaper drugs somewhere else.

According to a AARP "Rx Watchdog Report" study average increase in the price manufacturers charge for brand name prescription drugs widely used by older Americans continued to substantially exceed the rate of general inflation through March 2005. The cost of drug development is not rising since drug firms now outsource many of their operations overseas.

Of course, there is no relief in sight for Americans. Importing prescription drugs from Canada is an option but the current administration is unlikely to make it legal for Americans to do so.