Published reports show pharmaceutical companies raising prices while promising to deliver savings

Congresswoman Chellie Pingree expressed outrage today over published reports that the nation’s pharmaceutical companies raised prices last year more than any year since 1992.
 
“The drug companies promised us they would deliver $8 billion in savings into the health care system,” Pingree said.  “What they failed to tell us was that they apparently planned to jack up prices by $10 billion first.   It sounds like classic bait and switch scheme to me.”
 
According to today’s New York Times, the wholesale price of brand name prescription drugs went up 9% last year, a year in which overall consumer prices actually fell 1.3%.
 
“I can’t think of a worse time for the drug companies to suddenly start charging so much more for their products,” Pingree said. “With American families struggling economically and inflation at near record lows, there is just no excuse for it.”
 
Pingree said the report also shows the need to pass comprehensive health care reform like the bill recently voted on in the U.S. House.
 
“The bill I voted for last week is the kind of reform we need,” Pingree said.  “It will lower prescription drug prices for seniors and rein in health care costs for all of us. And this report today shows why we need a public option—unless we give these big companies some competition, they are going to continue to increase prices for all Americans.”