Prices for [some] most popular drugs have jumped an average of 4 percent under the new Medicare drug benefit since it began last month

Stock Market News and Investment Information | Reuters.com: "Reports: Drug prices rise under US Medicare plan | Tue Feb 21, 2006 5:24 PM ET |
By Susan Heavey

WASHINGTON, Feb 21 (Reuters) - Prices for some of the most popular medicines used by seniors have jumped an average of 4 percent under the new Medicare drug benefit since it began last month, according to a report released on Tuesday.

The report, released by the Democratic staff of the House of Representatives Government Reform Committee, found prices for Pfizer Inc.'s (PFE.N: Quote, Profile, Research) pain reliever Celebrex, Merck Inc.'s (MRK.N: Quote, Profile, Research) cholesterol drug Zocor and eight other top drugs offered by 10 major plans rose during the controversial program's first seven weeks.

In some cases, drug prices rose 10 percent, it also found.

The report looked at plans offered by Aetna Inc. (AET.N: Quote, Profile, Research), Humana Inc. (HUM.N: Quote, Profile, Research), Medco Health Solutions Inc. (MHS.N: Quote, Profile, Research) and senior consumer group AARP, which offers its plan with UnitedHealth Group Inc. (UNH.N: Quote, Profile, Research).

"The private insurers offering the new Medicare drug plans are not providing seniors and individuals with disabilities with low drug prices," it said, adding the rise outpaced inflation as well as drug price increases found via drugstore.com and in Canada. ...