Further complicating matters for elderly Americans, Medicare is prohibited by federal law from negotiating lower medication prices. This practice means that pharmaceutical companies are free to charge exorbitant rates for no other reason than to pad their bottom lines. Given that people on Medicare are typically retired and living on a fixed income, high prescription drug prices have the potential to heavily impact this group.

The drastic increases have prompted the U.S. Senate and the U.S. Department of Justice to begin investigations into the pricing of generic drugs. They have issued subpoenas and sent letters to pharmaceutical companies in an attempt to find information regarding possible collusion between competitors.

Chances are, this will continue to be a pattern for the pharmaceutical companies, as more and more Americans are becoming aware of the actual cost of their medications (because insurance companies are shoving more of the financial burden on their enrollees).

It's also important to note that prescription coverage is not provided by Medicare. Prescription coverage is provided by Medicare Part D, which is an extra policy that Medicare enrollees must purchase. So not only are senior citizens being forced to pay for their prescription coverage, but they're having to pay more than ever before for necessary medication — and on a fixed income.