This study presents disturbing evidence of the cause of high prescription drug prices paid by senior citizens. This price discrimination has devastating effects on older Americans. Although they have the greatest need and the least ability to pay, senior citizens without prescription drug coverage must pay far more for prescription drugs than favored buyers. As a result of these high prices, many senior citizens are forced to choose between buying food and paying for the medications they need. For other popular medications, the price differential is even higher.
Price differentials are far higher for drugs than for other consumer items.
Pharmaceutical manufacturers, not drug stores, appear to be responsible for the discriminatory prices older Americans pay for prescription drugs. A comparison of wholesale and retail drug prices revealed that a majority of the markup is due to manufacturer price discrimination, not retail drug store markups. To protect seniors from this price discrimination, I have sponsored the Prescription Drug Fairness for Seniors Act, H.R. 664. This legislation uses the free market to give Medicare beneficiaries the same advantages that HMOs, insurance companies, and the federal government already receive. Companies can set their best price at whatever level they want.