Recently, Abbot Pharmaceuticals settled a lawsuit over its 400 percent price hike for Norvir, an HIV/AIDS drug. The company agreed to pay as much as $27.5 million in compensation, but not to lower the price of the drug.
Senators Amy Klobuchar and Charles Schumer have called on the Government Accountability Office to investigate the price increases. In addition, Klobuchar has asked the Federal Trade Commission to investigate Ovation Pharmaceuticals for drastically raising the prices of four drugs in 2006. In one case, the price of the tumor drug Cosmegen increased from $16.79 per dose to $593.75 per dose, or 3,436 percent.
“This does drive up the price of health care,” said Alan Goldbloom, president of Children’s Hospitals and Clinics of Minnesota. “Hospitals are either eating the cost or passing it along to insurers, so you and I are paying it in increased premiums.”