A new GAO report examines recent trends in drug prices for brand-name and generic pharmaceuticals. Based on prescription drug utilization data from the Blue Cross Blue Shield Federal Employee Program, the GAO found that, among other things, the usual and customary (U&C) price index for a “basket” of 100 commonly used prescription drugs increased at an average annual rate of 6.6% from 2006 through the first quarter of 2010, compared with a 3.8% average annual increase in the consumer price index for medical goods and services. For the same period, the average wholesale prices (AWP) price index increased at an average annual rate of 6.0%, and the average manufacturer prices (AMP) price index increased at an average annual rate of 5.3%. On the other hand, the U&C price index for a basket of 45 generic drugs decreased at an average annual rate of 2.6%. When the GAO included shifts in consumer utilization between brand-name and generic versions of the same drug ingredient in its analysis, the U&C price index increased about 2.6% per year.