Getting your Trinity Audio player ready...
There’s good news about prescription drug prices.
Not only are market forces keeping this year’s price increases below the general inflation rate, there is also strong evidence that reports of high drug inflation during the 1980s were exaggerated.
A new report by the U.S. General Accounting Office concludes that the Producer Price Index for prescription drugs “has overstated drug price inflation substantially since 1984.”
According to the accounting office, flawed sampling exaggerated drug inflation by as much as 36 percent. In addition, the accounting office found that the government’s inflation figures failed to reflect the savings generated by increasing use of cheaper generic drugs.
