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Retail price for prescription drug increased in a very fast rate since for the last decade

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(Credit: Phil Walter/Getty Images) AUCKLAND, NEW ZEALAND - MAY 15: Prescription medication is pictured on May 15, 2014 in Auckland, New Zealand. Bill English has delivered his sixth budget which included a $493 million families package, which includes extending paid parental leave and will introduce free doctors' visits and prescriptions for under 13s. It was also announced that the Government Budget would run at a surplus of $372 million for the 12 months to June 30, 2015.NZ Federal Budget Expected To Reveal Surplus And New Spending
March 1
8:20 AM 2016

The retail prices for prescription drugs have increased at a faster rate from the year 2006 to 2013. The annual cost of these drugs amounted to $11,000 in 2013 for a user taking the pills on a long term basis.

The AARP study found that the average price hike for prescription pills used by the older generation in America exceeded the price hike for other consumer products from the year 2006 -2013. The drug therapy cost of an individual is impacted by the retail price increase for prescription pills. The increase in prescription drug price also impact employers, tax-aided health programs like Medicaid and Medicare, and also private insurers.

In 2013, the retail price hike for prescription drugs used by older people in America was 9.4%. On an average, annual retail price for the 622 prescription drugs increased over six times the general inflation rate. Prices for speciality drugs and branded drugs increased 10.6% and 12.9% respectively in the year 2013. On the other hand, the price for generic drugs fell 4% in 2013.

In 2013, the collective average yearly price hike was greater than the retail price hike rate in the period from 2006 to 2012. The median yearly retail price hike for prescription drugs outstripped the general inflation rate each year from 2006 to 2013. The retail price hike for prescription drugs upset both the nation's economy and consumers. If this situation persist, it will become hard for older patients to avail costly medications.

The survey conducted by the Kaiser Family Foundation in August showed that nearly 24% of American citizens struggle to meet their medication expenses. The poll result also warned that the increase in drug prices could result in the swelling of medical insurance premiums, high tax rates and reduction in government health programs, as reported by Ars Technical.

In this study, AARP group monitored the retail price of 115 speciality drugs, 280 generic drugs and 227 branded drugs between the year 2005 and 2013. Leigh Purvis, director of health research at AARP's Public Policy Institute, said that the nation cannot merely depend on the retail price decrease for generic drugs as the price increase for speciality and branded drugs seems higher. He added that this increase will impact the older generations as well as health care structure.

The increase in drug prices was mainly due to the manufacture cost of specialty drugs for critical health conditions like Hepatitis B and cancer. The congressional team is examining the reason for the price hike while the politicians keep blaming pharmaceutical CEOs and Martin Shkreli for the increase in drug prices, Benefits Pro said.

Policymakers must concentrate on health innovation plans to reduce the impact of price hike for prescription drugs. There is a growing need to put a brake on the price hike for drugs in order to protect the older American community.

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