The rising cost of free stuff

WHAT GUMMINT DOES

FREE STUFF

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What's behind the huge price jump for some generic drugs? They cited the example of the asthma drug albuterol sulfate. The average cost for a bottle of 100 pills was $11 last October, the pair said. The average charge by this April was up to $434. The antibiotic doxycycline hyclate cost $20 last October for a bottle of 500 tablets, the congressmen observed. By April, the price was $1,849. "Most generics are increasing in price by an average 10% a year," said Bryan Birch, chief executive of Truveris, a New York company that monitors prescription drug costs. "But we've seen some popular drugs increase by more than 650% in the last year." He cited simvastatin, the generic equivalent of cholesterol drug Zocor, and clomipramine hydrochloride, the generic version of antidepressant Anafranil. Prices for each rose more than 650% from June 2013 to this June, Birch said. He said consumers often are unaware of such huge price hikes because they face only a copay when they buy meds at a drugstore. The skyrocketing costs are borne primarily by insurance companies, which subsequently raise people's premiums to accommodate the greater expenses, Birch said. "Someone ends up paying the bill," he said. "Ultimately, it's consumers." "There is much to be said for trying to improve some disadvantaged people's lot. There is nothing to be said for trying to create heaven on earth." -- Margaret Thatcher

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