GAO: Prices for more than 300 Part D generic drugs surge over five years

More than 300 established generic drugs under Medicare Part D had at least one price increase of 100% or more between first-quarter 2010 and first-quarter 2015, according to a report released yesterday by the Government Accountability Office. While prices for a changing basket of 2,378 Part D generic drugs (both established drugs and drugs that entered/exited during the period) fell 59% over the five-year period, the extraordinary price increases for these established drugs moderated the overall decline in generic drug prices, the agency said. “Unlike the larger changing basket of drugs, prices of established generics decreased moderately and then increased slightly,” the report states. “The steeper price decrease for the changing basket of generic drugs is at least partially attributable to more rapid price declines among new generic drugs as they enter the market.” Requested by Congress, the report looks at changes in generic drug prices under Medicare Part D and the factors that affect prices.