New AARP report shows even during pandemic consumers have had to
pay more for medicines
by Dena Bunis, AARP, June 7, 2021
En español | Retail prices for some of
the most widely used brand name prescription drugs continue to increase twice
as much as inflation, making these life-sustaining medicines potentially
unaffordable to many older Americans, according to a new report from AARP’s
Public Policy Institute.
In 2020, prices for 260 commonly used medications whose prices
AARP has been tracking since 2006 increased 2.9 percent while the general rate
of inflation was 1.3 percent, according to a recent AARP “Rx Price Watch” report.
“It’s unfair that drug prices keep rising, even for medications
that have been on the market for decades,” says Leigh Purvis, director of
health care costs and access at AARP and coauthor of the reports. According to
the June 7 report, the total retail prescription drug costs for the typical
older American who takes four to five prescription drugs per month would be
$31,000 per year — more than the $29,650 average annual income for Medicare
beneficiaries.
Prices for 8
popular drugs
Here’s a look at how retail prices have increased from 2015 to
2020 among these widely used brand name medications
·
Duexis, used for pain relief. Price increased by 60
percent, from $18,287 to $29,342.
·
Lyrica, treats fibromyalgia and diabetic nerve pain.
Price increased 47 percent, from $5,827 to $8,562.
·
Symbicort, treats asthma and COPD. Price increased 46
percent, from $2,940 to $4,282.
·
Victoza, treats diabetes. Price increased 42 percent,
from $7,936 to $11,300.
·
Lumigan, treats glaucoma and high eye pressure. Price
increased 42 percent, from $1,689 to $2,400.
·
Bystolic, treats high blood pressure. Price increased
by 41 percent, from $1,239 to $1,747.
·
Linzess treats irritable bowel syndrome. Price
increased 39 percent from $3,747 to $5,207.
·
Eliquis, treats atrial fibrillation and prevents
strokes. Price increased 33 percent, from $4,109 to $5,473.
For example, between 2015 and 2020, the annual price of Victoza,
a diabetes medication, increased by 42 percent, with the price of a year’s
supply rising from $7,936 to $11,300. During that same period the price of
Lyrica, used to treat fibromyalgia, increased by 47 percent — from $5,827 a
year to $8,562.
“AARP is calling on Congress to pass comprehensive drug reform,”
says Nancy LeaMond, AARP executive vice president and chief advocacy and
engagement officer. “Americans over the age of 50 use more prescription drugs
than any other segment of the population. This is not a population that can
afford rising drug prices.”
Increases are
slowing
The data shows that while prescription drug prices continue to
increase, those hikes have moderated in recent years. The 2020 increase was the
slowest average annual hike since 2006. Purvis says the slower rate of increase
could be attributable to the added scrutiny that organizations like AARP
and state and federal lawmakers have put on the problem of skyrocketing drug
prices.
AARP has renewed its campaign to convince federal and state
governments to adopt policies that will help lower prescription drug prices. As
part of its “Fair Drug Prices Now” initiative, AARP is
calling on Americans to contact their representatives to urge them to act.
Nearly a quarter of a million people have so far reached out to their
lawmakers, urging them to pass drug reform legislation.
“We’re putting the full weight of our 38 million members behind
the fight to lower drug prices,” says LeaMond. “The bottom line is that
Americans are sick and tired of paying the highest prices in the world for
prescription drugs.”
The report also depicts a long-term behavior by pharmaceutical
companies, Purvis says. “The data shows that clearly the pharmaceutical
companies have the power to take these smaller price increases all along, but
haven’t. It shows exactly how much control they have over their prices and can
choose when to use that control,” she says.
“When these price increases continue year after year it puts
people in a position where they are making the tough choice of, do I pay for
this prescription drug or do I eat this month? That is not a situation anyone
should be in, but unfortunately that is exactly where we are,” Purvis adds.
Price hikes
affect everyone
While the information in the AARP report refers to “retail”
prices and a majority of Americans have either public or private insurance that
helps pay their medication costs, these price hikes do work their way into
higher health insurance premiums and higher taxpayer costs for the Medicare and
Medicaid programs.
“Even if you pay only a relatively small share of that list
price, these hikes are ultimately going to push up premiums to the point where
health coverage becomes unaffordable,” Purvis says.
AARP suggests
solutions
AARP continues to push for a number of policy changes it
believes will lead to lower prescription drug prices. These include:
·
Medicare
price negotiations. Allow the program to
negotiate the prices of prescription drugs and allow private insurance plans to
have access to those lower prices.
·
Inflation-based
rebates. Require drug
manufacturers to pay a penalty when their prices for prescription drugs covered
by Medicare parts B and D increase faster than inflation.
·
Out-of-pocket
cap. Create a hard
out-of-pocket spending limit for Medicare Part D prescription drug plan
enrollees.
Dena Bunis covers Medicare, health care, health policy and
Congress. She also writes the “Medicare Made Easy” column for the AARP Bulletin. An award-winning journalist,
Bunis spent decades working for metropolitan daily newspapers, including as
Washington bureau chief for the Orange County Register and as
a health policy and workplace writer for Newsday.
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