New AARP Study Takes a Close Look at America’s Grandparents

Published in the Woonsocket Call on April 14, 2019

AARP’s newest research study, highlighting the latest trends, gives us a peek into the world of grandparenting, a role that millions of Americans now take on in their later years. This number has steadily grown, from 56 million in 2001 to a whopping 70 million today.

The youngest grandparent is about 38 years old, with 50 being the average age of becoming a first-time grandparent, notes Brittne Nelson-Kakulla, AARP Research’s Senior Research. For those with children, by age 65, 96 percent of Americans are grandparents, she says.

“Today’s grandparents are an economic force that cannot be ignored,” said Alison Bryant, senior vice president of research, AARP, in an April 8 statement with the release of this 40-page report. “They are living longer, working longer, shattering stereotypes and supporting their grandchildren in a variety of ways, including financially and culturally. Nearly all grandparents are providing some sort of financial support, helping to ease the costs of raising kids,” notes Bryant.

Grandparents Pump Billion’s into Nation’s Economy

According to AARP’s study, 70 million grandparents can have a major impact on the nation’s economy. Grandparents spend money on their grandchildren, an average of $2,562 annually, this equaling approximately $179 billion dollars per year. Those dollars are spent supporting their grandchildren in a variety of ways, from helping to pay day-to-day expenses (meals, groceries, etc.) allowances, vacations, and school/college tuition costs.

The study found that grandparents have, on average, four to five grandchildren, down from six to seven in 2011. The number of grandparents in the workforce has increased in the past seven years, with 40 percent of grandparents currently employed up from 24 percent in 2011.

Grandparents enjoy the positive aspects of grandparenting such as supporting dreams and sharing roots, history and culture, and experiences, says the AARP study, but they face financial challenges, too. Thirteen percent of grandparent’s struggle with the financial expectations of being a grandparent, including the cost of education, traveling to see the grandchildren.

Seven percent of grandparents have taken on debt to help their grandchildren pay for college and one in four of those grandparents have even cosigned private student loans for their grandchildren and/or incurred credit card debt that has not yet been paid back in full.

Over the decades, the role of grandparenting has remained consistent, observes the AARP study. Grandchildren continue to refer to grandparents as “grandma” or “grandpa” (70 percent to 60 percent respectively). But, one in twenty of the grandparent respondents prefer to be called by their first name.

Serving as a Source of Wisdom

Eighty one percent of the grandparent respondents say they play a key role in their grandchildren’s life. Over half say that they serve as a “moral compass” to the grandchildren on variety of issues ranging from education, morals to values. But they say that discussing topics on sexuality and politics are way “out of their comfort zone.”

Grandparents also see the importance of teaching gender equality and rising the be strong, independent woman, too, says the AARP study.

Thirty four percent of the grandparents say they have grandchildren of mixed or difference races or ethnicities. Nearly all of the respondents believe it is important that these grandchildren know about the heritage they share. Seven in ten make an effort to help their grandchildren learn about the heritage they do not share, says Nelson-Kakulla.

Sixty eight percent say that distance is the biggest obstacle that keeps them from getting enough one-on-one time with their grandchildren. Fifty two percent of the survey respondents have at least one grandchild who lives or 200 miles away, while 29 percent live over 50 miles from the closest grandchild, up from 19 percent in 2011. Like distance, busy full-or part-time work schedules keep grandparents as well as schedules of their children and grandchildren keep them from connecting.

Grandparents are turning away from making phone calls to maintain contact with their grandchildren, turning to new technologies like email, Facebook, Video Chat and Texting to bridge the mileage gap. Forty seven percent “like” the idea of group texting messages to chat with their grandchildren and 67 percent “like” the idea of using online video chatting to keep in touch.

Finally, 89 percent of the grandparent respondents say their relationship with their grandchildren is good for their well-being and 67 percent believe this role makes them more sociable. Sixty six percent say having grandchildren makes them more active, too.

AARP’s 21-minute online survey of 2,654 grandparents ages 38 and was conducted between August 20 and September 4, 2018.by Hotspex, Inc.

For a copy of AARP’s 2018 Grandparents Today National Survey, contact Brittne Nelson- Kakulla, Senior Research Advisor, AARP Research, at bkakulla@aarp.org.

Attacking Rising Prescription Drug Costs

Published in the Woonsocket Call on April 7, 2019

The Washington, DC-based AARP timed the release of its latest Rx Price Watch report as the House Energy Commerce Committee marked up and passed a dozen bills just days ago, six that would lower prescription drug costs. The legislative proposals now go to the House floor for consideration.

AARP’s new report, a continuation of a series that has been tracking price changes for widely used prescription drugs since 2004, was circulated to House Committee members before their markup and vote and its findings sent a message to the lawmakers that they hear from their older constituents, that is the costs of pharmaceutical drugs is skyrocketing, making it difficult to fill needed prescriptions.

Poll after poll findings reflect the concerns of seniors about their ability to pay for prescribed medications. According to a Kaiser Family Foundation poll released last month, 79 percent of survey respondents view drug prices to be “unreasonable,” while just 17 percent found the costs to be “reasonable.” Twenty-four percent of these respondents found it difficult to pay the costs of their prescription drugs.

Generic Drugs Can Save Dollars

According to the new AARP Public Policy Institute (PPI) report, by Leigh Purvis and Dr. Stephen W. Schondelmeyer, the average annual cost of therapy for one widely used brand-name prescription drug in 2017 was over 18 times higher than the cost of therapy for one generic drug. The cost for a generic medication used on a chronic basis averaged $365 per year. In contrast, the average annual cost for a brand-name prescription drug was $6,798. But, four years earlier the price differential between these same market baskets was substantially smaller ($4,308 verses $751 respectively).

“Generics account for nearly nine out of every 10 prescriptions filled in the U.S. but represent less than a quarter of the country’s drug spending,” said Debra Whitman, Executive Vice President and Chief Public Policy Officer at AARP, in a statement released with the PPI’s 28 page report “These results highlight the importance of eliminating anticompetitive behavior by brand-name drug companies so that we get more lower-priced generic drugs on the market,” says Whitman.

AARP’s PPI report, entitled “Trends in Retail Prices of Generic Prescription Drugs Widely Used by Older Americans,” found that retail prices for 390 generic prescription drugs commonly used by older adults, including Medicare beneficiaries, decreased by an average of 9.3 percent in 2017, compared to the general inflation rate of 2.1 percent. The decline follows two consecutive years of substantial generic drug price decreases; the previous two consecutive years saw increases in generic drug prices. All but three of the 390 generic prescription drugs analyzed in AARP’s report had a retail price change in 2017. While prices for 297 (76 percent) drug products decreased, 90 (23 percent) products had price increases.
Six commonly used generic drug products had retail price increases of greater than 70 percent, including a nearly 200 percent increase for sertraline HCL, an antidepressant, finds the AARP.

AARP’s PPI report found that with older adults taking an average of 4.5 prescription drugs every month, those using generic prescription drugs were likely to have an average annual retail cost of $1,642 in 2017.

“The gap between average annual brand-name and generic drug prices has increased dramatically—brand name drug prices were six times higher than generic drug prices in 2013 but more than 18 times higher in 2017,” said Leigh Purvis, Director of Health Services Research, AARP Policy Institute, and co-author of the report. “As long as brand name drug prices continue to skyrocket, the value of prohibiting brand name drug company practices that slow or prevent competition from generic and biosimilar drugs cannot be overstated.”

AARP Pushes for Passage of Bills to Lower Drug Costs

Before the Committee on Energy and Commerce vote on April 3, in correspondence AARP urged Chairman Frank Pallone, Jr. (D-N.J.) and Ranking Member Greg Walden (R-Ore) to enact two bills (along with four other proposals) being considered at the morning markup session. These legislative proposals would lower prescription drug costs and had previously been approved by the Energy and Commerce Health Subcommittee.

In the correspondence, AARP’s Nancy A. LeaMond, Executive Vice President and Chief Advocacy and Engagement Officer, pushed for passage of H.R., 1499. the “Protecting Consumer Access to Generic Drugs Act of 2019.” introduced by Rep. Bobby Rush (D-IL). This proposal would make it illegal for brand-name and generic drug manufacturers to enter into agreements in which the brand-name drug manufacturer pays the generic manufacturer to keep a generic equivalent off the market. The bill was passed by voice vote.

LeaMond also supported H.R., 965, the “Creating and Restoring Equal Access to Equivalent Samples (CREATES) Act of 2019,” introduced by Reps. David Cicilline (D-RI), Jim Sensenbrenner (R-WI), Jerrold Nadler (D-NY), Doug Collins (R-GA), Peter Welch (D-VT), and David McKinley (R-WV). The proposal would establish a process by which generic manufacturers could obtain sufficient quantities of brand drug samples for testing thereby deterring gaming of safety protocols that brand manufacturers use to delay or impede generic entry. The bill passed by a bipartisan vote of 51-0.

At the markup, Pallone and Walden were able to work out philosophical differences on H.R. 1499 and H.R. 965. The two lawmakers also hammered out a compromise on H.R. 1503, the “Organize Book Transparency Act of 2019,” that would ensure that the Orange book, which identifies drug products approved on the basis of safety and effectiveness by the Food and Drug Administration, is accurate and up-to-date.

Washington Insiders say that Democratic control of the House will ensure the passage of these legislative proposals on the House floor and the bipartisan vote on the CREATES Act in the lower chamber creates an opportunity for Senate Finance Committee Chairman Chuck Grassley (R-Iowa) to successfully push his CREATES Act companion measure in the Senate.

Grassley says the broad, bipartisan action by the House Energy and Commerce Committee to advance the CREATES Act is a major win for consumers. “I look forward to advancing this bill because it will cut down on abuses in the system that keep prices high for patients. I’m also pleased that the committee advanced a bill to address pay-for-delay schemes. Although that bill is not identical to the bill I’ve sponsored in the Senate, the bill’s movement shows that the committee is serious about addressing the pay-for-delay problem,” says the Senator.

As They See It…

AARP’s LeaMond, says “Brand-name drug companies want to stifle generic competition to protect their monopolies and profits. AARP believes that eliminating these deliberate anticompetitive behaviors will result in a more robust generic drug market and greater savings for both patients and taxpayers. The Congressional Budget Office estimated that legislation such as the CREATES Act could save taxpayers more than $3 billion over a decade, and the Federal Trade Commission estimated pay-for-delay deals cost consumers and taxpayers $3.5 billion a year.

“We have long supported the CREATES Act and banning pay-for-delay agreements, and are heartened that Congress is acting to improve access to generic drugs. These bills will promote competition driving down costs for seniors,” says Lisa Swirsky, Senior Policy Analyst, at the National Committee to Preserve Social Security and Medicare.

“Congressman Cicilline has been a leader in our caucus for putting prescription drug prices at the front of our agenda. Moving generics to market faster is an important step to lower prescription drug costs for every American,” said House Speaker Nancy Pelosi. “House Democrats have made it a top priority to lower Americans’ health costs by reducing the price of prescription drugs, and these bipartisan bills show we mean to deliver,” she says.

AARP’s Launches Media Campaign, Calling on Congress to Lower Drug Costs

Published in the Woonsocket Call on March 31, 2019

Check out AARP’s latest YouTube video. The video kicks off AARP’s ‘Stop Rx Greed’ Campaign., its goal is to drive down spiraling drug costs. As people (with their faces blurred by an image of a large one-hundred-dollar bill) go about their daily routines, either shopping, jogging, doing laundry or even working, the announcer seeks to drive home the 30 second ad’s message:

“The Big drug companies do not see us as people, they see us as profits. “We’re paying the highest prescription drug prices in the world so they can make billions. Americans should not have to choose between buying medication and buying food for our families. It’s time for someone to look out for us. Congress stop the greed, cut drug prices now.”

The Stop Rx Greed campaign, launched on March 13, will include national television, radio and digital ads, editorial content, emails to members, social media posts, ongoing advocacy and grassroots activity inside the Beltway and the states, and a petition calling on Congress and the Administration support legislation being considered to lower drug costs.

“Americans are paying the highest prescription drug prices in the world,” said Executive Vice President and Chief Advocacy & Engagement Officer Nancy LeaMond, in a statement announcing the new AARP media campaign, “It’s time for pharmaceutical companies to stop deflecting blame and acknowledge that the root cause is the price they set for their products,” she said.

Calling on Trump and Congress to Lower Drug Costs

On May 12, as part of the Stop Rx Greed campaign, AARP sent correspondence to President Donald J. Trump and congressional lawmakers calling for a legislative fix to lower pharmaceutical costs. The aging advocacy group noted that Medicare beneficiaries (suffering from multiple chronic conditions), who take an average of 4.5 prescriptions per month, live on very modest, fixed incomes and warned that they can’t easily pay escalating drug prices. Many just choose to not fill their prescriptions. The median annual income of a Medicare beneficiary is just over $26,000. One-quarter have less than $15,000 in savings.

For the last 15 years, AARP has been tracking the prices of widely-used prescription drugs, says the correspondence, noting that these reports have found that “the average annual price increases for brand name drugs have exceeded the corresponding rate of inflation every year since at least 2006.”

AARP even reminded Trump and Congress that Medicare’s budget takes a hit with continual increase in prescription drug costs. “Between 2005 and 2016, Medicare Part B drug spending more than doubled from $12 billion to $29 billion. Total Medicare Part D spending is approaching $150 billion. These escalating costs will eventually result in higher taxes, cuts to important public programs, or both,” says the correspondence.

Bipartisan Support to Lower Drug Costs

As part of the media campaign, AARP Research conducted a national survey of likely 1,218 voters ages 50 and older. The survey, conducted between February 15 and March 4, 2019, found that lowering drug costs is a bipartisan issue. Eight percent of the respondents take at least one prescription medication.

A significant majority of the self-identified Republican, Democrat, and Independent respondents shared their concerns about the high price of drugs, and supported common-sense policies that will lower prices. The findings revealed that 93 percent of the respondents support making it easier to bring generic drugs to market while 92 percent call on Congress to allow Medicare to negotiate with drug companies to lower prices.

According to the AARP survey, 72 percent express concern about the cost of purchasing their medications. Nearly 40 percent say they did not fill a prescription provided by their doctor with cost being the most common reason. Over 60 percent say that prescription drug costs are “unreasonable,” fearing that they will have or will need to make budgetary trade-offs to afford paying for their medications.

The researchers also found that a majority of the respondents (Democrats, 90 percent; Republicans, 88 percent; and Independents, 90 percent) believe that pharmaceutical companies make too much profit and spend too much on advertising.

As part of the AARP’s Stop Rx Greed campaign, the nation’s large nonpartisan organization advocating for people age 50 and older, has a few ideas as to how Congress can make fixes to lower drug prices.

Let’s Take a Look at AARP’s Legislative Fix

Medicare should use its bargaining power to put the brakes on skyrocketing drug costs and lower drug prices, which is especially important for the highest priced drugs and those with no competition. This can be legislatively accomplished by allowing the Secretary of Health and Human Services to negotiate drug prices on behalf of Medicare’s 40 million beneficiaries who rely on Part D.

Congress should pass legislation capping out-of-pocket costs to protect beneficiaries and financial stability of the Medicare program. In 2015, Medicare Part D enrollees’ out of pocket spending totaled $27 billion.

Finally, legislation passed by Congress can increase competition in the market to lower prescription drug prices. Currently, Congress, is considering two bills, the CREATES Act (S. 340/H.R. 965) and efforts to ban Pay-For-Delay agreements. These two legislative proposals would help lower prices through increasing competition and providing consumers with access to lower cost generic medications.

AARP says, lower drug prices might also be achieved at the state level if states are allowed to negotiate lower prices with drug companies, giving state Attorneys Generals authority to crack down on outrageous price increases, and preserving state pharmacy assistance programs.

“There’s no one solution that’s going to solve this issue,” said John Hishta, AARP Senior Vice President of Campaigns. “Success will be when consumers are no longer price gouged by the drug industry and can afford the drugs they need.”