STUDY ADVISES LIMITS ON DRUG-PRICE GROWTH

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, February 11, 1993                   TAG: 9302110014
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-10   EDITION: METRO 
SOURCE: Cox News Service
DATELINE: WASHINGTON                                LENGTH: Short
STUDY ADVISES LIMITS ON DRUG-PRICE GROWTH
Americans could save $60 billion over the next 10 years if the growth rate of prescription drug prices is contained, according to a study released Wednesday by a leading congressional advocate of health care reform.
The University of Minnesota study found that from 1983 to 1993, outpatient spending for prescription drugs increased from $17 billion to almost $40 billion, or 134 percent.
The report projected that prescription prices would increase another 116 percent, or $86 billion, by the year 2003 without a cost-reduction plan.
By limiting the growth rate of prescription drug prices to the Consumer Price Index plus 2 percent, a savings of $60 billion over 10 years could be achieved, the study projected.
"Like a spoiled child, the pharmaceutical industry has wept and stamped its feet whenever cost-containment measures have been proposed," said Rep. Pete Stark, D-Calif. "This study shows it's time for them to grow up and accept their medicine."
Stark, chairman of the House Ways and Means subcommittee on health, is expected to introduce a bill this month to establish a prescription drug price review board. The board would regulate manufacturers' price increases by shortening the life of a drug's patent or taxing manufacturers who refuse to sell a drug at a "reasonable price."
"Prescription drug prices need a good depressant," Stark said.
Dave Emerick, a spokesman for the Pharmaceutical Manufacturers Association, said the group had not reviewed the study and could not comment.

by Archana Subramaniam by CNB