Most Medicare Drug Plans Continue to Hike Costs into 2008 Two-to-Three Times Rate of...(bout 5 years -- it seemsincumbent on Con...),Health

When the Medicare Part D program was passed in 2003, Congress specifically prohibited giving Medicare the power to negotiate lower drug prices like the Department of Veterans Affairs currently does. The House last year passed a bill to give the government the power to bargain on behalf of private insurance plans, but the Senate was unable to pass a similar bill.

Each month since December 2005, Consumers Union has been monitoring the price of five common drugs in a zip code in each of five large population states -- California, New York, Illinois, Florida and Texas. The data has consistently shown major swings in price, usually upward, that have far exceeded basic inflation in the economy.

CU has also found that costs consistently increase from December to January. Beneficiaries are allowed to switch plans during open enrollment from mid-November to Dec. 31 each year, and the hikes seem to coincide with the end of open enrollment season.

"It is too late now for 2008," said Vaughan, "but the data also shows why it is important for a Medicare enrollee to take the time during open enrollment to check if their plan will change the price of the drugs they are taking the following year. Otherwise, the first January visit to the pharmacy can be a shock."

The data showed several Aetna and Envision Rx plans in the five states increasing the price of the package of five drugs by more than $1,000 between December and January. It also showed that about 25 percent of plans decreased the costs for the five drugs during that time, with an average drop of $220.

"Some drug plans are lowering costs, but the declines are much smaller and less dramatic than the increases," said Vaughan.

For a chart showing the increases and decreases in the five states, contact Bill Vaughan at