Your Turn: “Rhode Island can’t afford three times more” – Catherine Taylor, AARP, RI

By Catherine Taylor, AARP, Rhode Island

People of all ages are skipping pills because they can’t afford their medication. That’s because Americans are paying three times what people in other countries pay for the same medicine. People are sick and tired of being price-gouged for the medicine they need. So, they are calling on the President and Congress to take action.

At AARP, we have tracked the prices of the most commonly used prescription drugs for well over a decade. Every year, the prices of the most commonly used prescriptions have risen faster – often much faster – than the prices of other goods and services. Our most recent Rx Price Watch Report, which looked at 260 widely used brand-name medications, found that their prices rose more than twice as fast as general inflation in 2020 – and that’s in the middle of a global pandemic and financial downturn!

Prices are rising so fast that some Rhode Islanders are forced to choose between the medications they need and other necessities, like rent and groceries. The average senior takes four or five prescriptions each month, usually on a chronic basis. With an average annual price tag of $6,600 for just one brand-name drug, that quickly adds up to more than the median annual income for people on Medicare. To give one example, here in Rhode Island, we know there are about 94,479 people living with cancer. One common cancer medication, Revlimid, jumped from an annual price of $186,234 in 2015 to $268,319 in 2020. These price increases are unsustainable.

So, what can the President and Congress do that will actually bring down the outrageous price tags for prescription drugs?

Allow Medicare to negotiate for lower prescription drug prices.

Right now, Congress is considering allowing Medicare to negotiate drug prices through a measure in the upcoming budget resolution to address prescription drug prices and other issues.

An AARP survey shows that 87% of registered voters 50 plus support allowing Medicare to negotiate with drug companies. Right now, the program is largely stuck paying whatever price pharmaceutical companies demand – leaving the government on the hook for sky-high costs that increase every year. Medicare already spends $129 billion annually on prescription drugs for seniors. These skyrocketing drug prices increase overall taxpayer costs by billions of dollars for programs like Medicare. 

By allowing the program to use its considerable buying power to negotiate, both seniors and taxpayers could see significantly lower costs.

We are fighting for positive change on behalf of ou132,000 Rhode Island members – and for all Rhode Islanders. You pay for the high prices for prescription drugs, regardless of whether you’re taking them yourself. In addition to co-pays at the pharmacy counter, we pay for medication costs through our insurance premiums and taxes that fund government programs like the Veterans Administration (VA), Medicare, and Medicaid.

It’s not fair that Americans are stuck paying the highest prices in the world for our prescription drugs. These prescription drugs don’t work if people can’t afford to take them. The President and Congress agree we need to lower drug prices – now it’s time for them to get it done.

Catherine Taylor is AARP Rhode Island State Director.

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Rx Costs Outpaced Rhode Islanders’ Income by 114%; Big Pharma Spent More on Stock Buybacks & Dividends than R&D: New Data

AARP: Congress Should Allow Medicare to Negotiate Lower Drug Prices

The cost of prescription drug treatment grew 114% faster than the average Rhode Islander’s income from 2015 to 2019, while Big Pharma spent more on stock buybacks and dividends than on research and development from 2008 to 2018, three new AARP fact sheets show.

While Ocean State residents’ income rose by 12.3% on average from 2015 to 2019, the average annual cost of prescription drug treatment jumped by 26.3%, the fact sheets show.

The pharmaceutical industry spent nearly $6.6 billion on advertising and over $161 million on lobbying in 2020. The federal government continues to play an outsized role in prescription drug R&D.In fact, most of the important new drugs introduced over the past 60 years were developed with the aid of research conducted in the public sector.

Meanwhile, AARP’s most recent Rx Price Watch Report found that the prices of 260 widely used brand-name medications rose more than twice as fast as general inflation in 2020 – in the middle of a global pandemic and financial downturn.

Americans pay more than three times what people in other countries pay for the same medicines. Too many consumers have to choose between filling life-saving prescriptions and paying rent, buying food and other critical essentials.

Prices can add up, as the average older American takes four to five prescription drugs per month, typically on a chronic basis.

“Congress should put a stop to these spiraling price increases, starting by – at long last — giving Medicare the authority to negotiate with pharmaceutical companies for lower prices,” said AARP Rhode Island State Director Catherine Taylor. “If the Veterans Administration can do so – paying roughly half as much for brand name prescription drugs as does Medicare Part D – then why can’t Medicare?

“For a decade, Big Pharma has spent more on stock buybacks and dividends than on research and development; it’s outrageous that drug makers are charging Americans three times what people in other countries pay for the same drugs and justifying it with lies and scare tactics that simply don’t hold up,” Taylor added.

Medicare Part D spent more than $180 billion on prescription drugs in 2019. Giving the program the power to negotiate would help reduce taxpayer spending and save Medicare Part D beneficiaries $117 billion over the next 10 years.

An AARP survey shows that 87% of registered voters 50 plus support allowing Medicare to negotiate with drug companies. Right now, the program is largely stuck paying whatever price pharmaceutical companies demand – leaving the government on the hook for sky-high costs that increase every year,

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AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With nearly 38 million members and offices in every state, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP works to strengthen communities and advocate for what matters most to families with a focus on health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name.  As a trusted source for news and information, AARP produces the world’s largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org or follow @AARP and @AARPadvocates on social media.