New Advertisements Ask, 'Who is AARP Really Fighting For?'
NEWS PROVIDED BY Pharmaceutical
Research and Manufacturers of America (PhRMA)
Jun 12, 2019, 06:01 ET
WASHINGTON, June 12, 2019 /PRNewswire/
-- Eighty-six percent of AARP members support the administration's
proposed rule to reform the rebate system in Medicare Part D, according to a nationwide Morning
Consult survey commissioned by the Pharmaceutical Research
and Manufacturers of America (PhRMA). Despite overwhelming support from their
membership, AARP continues to oppose the rebate rule while receiving hundreds
of millions of dollars in revenue from insurance companies every year.
In Medicare Part D, insurers and
pharmacy benefit managers (PBMs) negotiate significant rebates on medicines,
but often don't share those savings with seniors directly. The rule proposed by
the Department of Health and Human Services (HHS) Office of Inspector General
(OIG) would change this by ensuring the rebates negotiated with biopharmaceutical
companies are entirely passed through to seniors at the pharmacy counter.
Even after being told it may
increase premiums by $3 to $6 per month, the vast majority
of AARP members -- 73% -- support the proposed rule since savings at the
pharmacy counter would more than offset premium increases. For example, a
senior with diabetes taking five medicines, including insulin, could save
nearly $900 a year, according to Avalere Health.
In comments submitted on the rebate
rule (see here and here), AARP consistently opposes it, echoing concerns raised
by insurance companies, from whom AARP has received the vast majority of their
revenue in recent years. Eighty-five percent of AARP members say they are
disappointed in AARP for siding with insurers in opposition to the rebate rule,
according to the new survey.
"We are fighting to lower costs
for seniors by forcing insurance companies and middlemen to share negotiated
savings at the pharmacy counter," said PhRMA executive vice president of
public affairs Robert Zirkelbach. "Yet AARP is choosing to stand with
insurance companies rather than their own members. It begs the question: Who is
AARP really fighting for?"
The new advertisements will be
featured in print, digital and social channels in Washington, D.C., and
select states. The first print advertisement highlights AARP members' support
for rebate reform and AARP's alignment with insurance companies in opposition
to it.
View the new print
advertisement here.
Key facts about AARP's relationship
with insurance companies:
·
Since
2010, AARP has made more than $4.5 billion in royalties and
investment income as a result of their relationship with insurance companies.
AARP consolidated financial statements available here: 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017.
·
Additionally,
according to a news report, "A review of AARP's financial statements
shows that since 2010, AARP has made more than $4.5 billion in income
from…health insurance plans and generating investment income from plan
premiums."
·
Additional news reports note that, "Much of AARP's revenue
comes from its connection to United Healthcare Group (UHG). While AARP
collected $301 million in membership dues in 2017, the organization
took in about $627 million in royalties from UHG."
·
According
to a 2011 Congressional report, "United is AARP's largest
business partner. As part of the United and AARP business agreement all three
of the Medicare insurance product lines are marketed under the AARP brand
name." This same report further found that "State insurance rate
filings show that, in 2010, AARP retained 4.95% of seniors' premiums for every
Medigap policy sold under its name."
·
A news report quoted a former AARP executive as saying
that, "The new arrangement with insurance companies creates a tremendous
number of potential conflicts for AARP."
Learn more at WhoisAARP.org.
About PhRMA
The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country's leading innovative biopharmaceutical research companies, which are devoted to discovering and developing medicines that enable patients to live longer, healthier, and more productive lives. Since 2000, PhRMA member companies have invested more than $600 billion in the search for new treatments and cures, including an estimated $71.4 billion in 2017 alone.
The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country's leading innovative biopharmaceutical research companies, which are devoted to discovering and developing medicines that enable patients to live longer, healthier, and more productive lives. Since 2000, PhRMA member companies have invested more than $600 billion in the search for new treatments and cures, including an estimated $71.4 billion in 2017 alone.
Connect with PhRMA
For information on how innovative medicines save lives, please visit:
www.PhRMA.org
www.Innovation.org
www.MAT.org
www.Facebook.com/PhRMA
www.Twitter.com/PhRMA
For information on how innovative medicines save lives, please visit:
www.PhRMA.org
www.Innovation.org
www.MAT.org
www.Facebook.com/PhRMA
www.Twitter.com/PhRMA
SOURCE Pharmaceutical Research and Manufacturers of America
(PhRMA)
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An article from a decidedly biased viewpoint. While challenges may exist with AARP's relationship with insurance carriers, when was the last time all this research and development resulted in a medication the general public could afford? Miracle medications that cost $200,00 to $300,00 a year, that are beyond the reach of the general public, surely contributes to Big Pharma's bottom line. A recent discussion with my General Practitioner posed the question - when is the last time an antibiotic was introduced? No big profits in that, but a whole hell of a lot of good for society in general.
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