CBO report finds skyrocketing price increases for brand Rx drugs for Medicare, Medicaid
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From 2009-2018, the average net price of brand-name prescription drugs more than doubled for Medicare and increased 47% for Medicaid, according to a new CBO report.
In Medicare Part D during the time period, the price of brand-name drugs rose from $149 to $353. For Medicaid, it went from $147 to $218.

However, the report found that the average net price of prescriptions actually declined as a result of discounts and rebates. The decline was also attributed to increased use of generic drugs and lower prices for those medicines.
The average net price of a prescription declined to $50 in 2018 from $57 in 2009 in Medicare. In Medicaid, it dropped to $48 from $63.
In a statement, Sen. Ron Wyden (D-Ore.), chairman of the Senate Finance Committee chairman said the report highlights the need for drug pricing reforms. "The average net price for brand-name prescription drugs in Medicare Part D doubled in the last decade â far faster than inflation. It's time to give Medicare the tools to fight back against high prices."
Selected drug makers: Eli Lilly (LLY
-1.1%), Merck (MRK
-0.3%), Bristol-Myers Squibb (BMY
-0.7%), Abbvie (ABBV
+0.3%), Pfizer (PFE
+1.5%), Johnson & Johnson (JNJ
+2.5%), and Amgen (AMGN
-0.2%).
In April, the CBO found that pharma companies have increased R&D spend in recent years.