Prescription drug industry scrutinized over sudden spike

December 8, 2009 3:15:29 PM PST
Lawmakers in Washington blasted the pharmaceutical industry over a sudden spike in prescription drug prices.

At a hearing on Capitol Hill, lawmakers pointed to a new survey showing drug prices rose nine percent in the past year, the biggest increase since 1992. Some questioned whether drug makers are raising prices before health care reforms start cutting into their profits.

"The drug price increases over the last year are the biggest we've seen in a very, very long time. It's hard to escape the conclusion that the industry is positioning itself -- positioning it's pricing for enactment of the new health reform legislation," said Rep. Henry Waxman, D-CA

Drug makers previously pledged $80 million in subsidies for health care reforms. They say there are valid business reasons for raising drug prices.


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