grow old with me, bring extra cash

WASHINGTON (Reuters) - Drug firms raised the prices of some medicines as much as 10 percent since the Bush administration enacted the new Medicare law late last year, making it hard for some patients to afford them, a new report said on Wednesday.

AARP, formerly known as the American Association of Retired Persons, said the prices of brand-name drugs most used by older adults climbed an average 3.4 percent since late December.

The jump -- three times the rate of inflation -- was one of the sharpest quarterly spikes since 2000, the nation's largest group representing the elderly said in its report.

Drug manufacturers used "very aggressive pricing practices ... that harm the elderly population's ability to afford those drugs," said John Rother, AARP's policy director.

The findings follow an earlier AARP report showing prices for the same drugs grew 6.9 percent in 2003. But the quarterly increase since President Bush signed the Medicare bill into law was particularly high, according to the study.

AARP, which supported the bill, is concerned "manufacturers are offsetting the discounts with prices that are higher than they otherwise would have been." Rother said. "It doesn't seem to be market driven."

Quote:

(Reuters) - Prices for medicines most used by older Americans rose steadily after the Bush administration enacted the new Medicare law late last year, the nation's largest group representing the elderly said on Wednesday. AARP, formerly known as the American Association of Retired Persons, said brand-name drug prices have climbed 3.4 percent -- or three times the rate of inflation -- since December. The jump was one of the sharpest quarterly spikes since 2000, the report said.