Wake up call on spiraling brand-name drug prices 

Published in RINewsToday on August 14, 2023

By Herb Weiss

A new pharmaceutical drug price report that is both timely and overdue has been released by AARP’s Public Policy Institute, following on the heels of the Centers for Medicare & Medicaid Services (CMS) releasing in June, which revised guidance for the historic Medicare Drug Price Negotiation Program.  

This report details the list prices for the 25 brand-name drugs with the highest total Medicare Part D spending in 2021, noting that prices have increased by an average of 226%—or more than tripled—since they first entered the market. Those 25 drugs were responsible for $80.9 billion in total Medicare Part D spending in 2021, about 37% of the total spending, and were used by more than 10 million Part D enrollees.  It noted that, on average, nearly 60% of their current list price was due to price increases after the product entered the market.

The price of Enbrel, used to treat rheumatoid arthritis and psoriatic arthritis, has increased by 701% since coming to market in 1998, and the price of Januvia, used to treat diabetes, has increased by 275% since entering the market in 2006.

Overall, the lifetime price increases ranged from 20% to 739%, and all but one of the drugs’ lifetime price increases greatly exceeded the annual rate of inflation over the same period of time. 

Brand-name drug prices increase faster than inflation has – for decades

“Brand-name drug prices have increased dramatically faster than inflation for decades,” said Leigh Purvis, Prescription Drug Policy Principal, AARP Public Policy Institute, and author of the report.  “The median price of a new brand-name prescription drug is now approximately $200,000 per year, so even relatively small percentage price increases can translate into thousands of dollars and put life-saving medications out of reach of the patients who need them,” she said. 

“We know that there is lot of media attention on individual drug prices that take place year after year.  However, a lot less attention is paid to how those price increases are often building on top of a long line of price increases and how those relentless price increases add up over time,” says Purvis, during a press call to journalists scheduled on the day of the report’s release.

“These findings have huge implications for the people that AARP represents, many of whom need prescription drugs to help them stay well,” Purvis said. “People on Medicare prescription drug plans take on average of between 4 and 5 prescription drugs per month and their drugs are increasing covered using coinsurance where you pay a percentage of the drugs price instead of a flat co-pay.  In fact, across the country more and more people are facing cost sharing directly affected by drug price increases, whether it is by coinsurance or simply before they meet their deductible.  Millions of other people don’t have health coverage and are having to absorb the cost associated with growing drug prices on their own,” she said.

“Our analysis shows that drugs that have been on the market for twenty years or more have seen an average lifetime price increase of 592 percent.  In real terms this can be the difference of thousands of dollars for one person and enough to force the trade-offs that we often hear about, like choosing to put food on the table or being able to pay for gas,” notes Purvis.

“There is no justification for drug companies to engage in these type of price increases every year they are on the market, particularly increases that are so much higher than the price increases for other goods and services,”  adds Purvis. 

CMS releases revised guidance for negotiating with drug manufacturers 

Congress recently passed the Inflation Reduction Act (IFA), a federal law requiring drug companies to pay a penalty to Medicare if their drug’s price increases faster than the rate of inflation. The law will also give Medicare the ability to negotiate lower drug prices with drug companies for the first time. CMS is expected to announce the first 10 drugs selected for negotiation by September 1st, and the negotiated prices will become available in 2026.

“This historic law cracks down on the big drug companies and [will bring] real relief to millions of seniors who have been struggling with out-of-control prescription drug prices,” said Nancy LeaMond, AARP Executive Vice President and Chief Advocacy and Engagement Officer. “American families simply can’t afford to keep paying the highest prices in the world for the medications they need.”

Last March, CMS issued initial guidance to seek comments on its historic Medicare Drug Negotiation Program.  The agency received over 7,500 comments from consumer, patient groups, drug companies and pharmacies.  In June, CMS released its revised guidelines detailing the requirements and parameters of how the agency will oversee the new program.

“Issuing final guidance for the Medicare Drug Price Negotiation Program is an important “next step” in controlling spiraling high drug prices, says AARP’s LeaMond, noting that Medicare’s new buying power will get a better price for Medicare beneficiaries, saving the program billions of dollars and making prescription drugs more affordable.

Opposition, of course

At press time, the Pharmaceutical Research and Manufacturers of America (PhRMA), the leading industry lobby group for pharmaceutical companies, along with a group of pharmaceutical companies and trade groups, are suing the U.S. Health and Human Services to block the implementation of the Medicare Drug Price Negotiation Program established by the Inflation Reduction Act enacted by President Biden last August. The U.S. Chamber of Commerce has also filed a lawsuit in a U.S. District Court in Ohio to ask for an injunction to keep the negotiations from going forward. The trade group is challenging the constitutionality of the IFA’s drug price negotiation program.   

It’s a very high lift and big burden to meet the standard to stop the law from being implemented,” noted Kelly Bagby, AARP’s Vice President at AARP Foundation Litigation, before AARP’s press call ended.

“It is entirely appropriate and is necessary and the public interest is so enormous in balancing of the government’s interest verses the pharmaceutical companies and Chamber’s interest in this case,” says Bagby,” stressing that beneficiaries have to win this case. “It’s so obvious that pharmaceutical companies are not the victims they are painting themselves to be, she adds, affirming her belief that beneficiaries and Medicare have the strongest argument.  

Bagby noted, “AARP is working to protect the integrity of whole Medicare program for everybody and to allow for older people to not have to make horrible choices about do I pay my rent or do I get to take my life saving drugs.” 

Reports a Wake-Up Call

Although PhRMA,  pharmaceutical companies and trade groups along with the U.S. Chamber are strongly opposed to CMS’s new program to negotiation drug prices, polls show that people aged 50 and over, view the lowering of the price of costly prescription drugs to be a very important policy issue to them. Purvis hopes that the recently released AARP report will serve as a wake-up call for every American who is skeptical about the importance of lowering prescription drug prices. “Higher government spending driven by drug price increases will affect all Americans in the form of higher taxes, cuts to public programs, or both,” she predicts.  

For a copy of AARP’s Medicare Part D Drug Price report, go to https://www.aarp.org/pri/topics/health/prescription-drugs/prices-top-medicare-part-d-drugs-tripled-since-entering-market.html.

AARP helping RI communities become more livable with Challenge Grants

Published in RINewsToday on July 31, 2023

One might say that the Washington, DC-based AARP puts its money where its mouth is. The nation’s largest aging advocacy group recently announced that it is investing $3.6 million in 310 Community Challenge grants for quick-action projects to help these communities become more livable. AARP says its grants will improve public places; transportation; housing; digital connections; diversity, equity and inclusion; and more, with an emphasis on the needs of adults aged 50 and older.

AARP defines a livable community is one that is safe and secure, and it offers choices in where to live and how to get around. A livable community enhances a person’s independence and allows residents to age in place. It also provides a variety of opportunities for its residents of all ages, abilities, and backgrounds to participate in the community’s civic, economic, and social life.

And, a livable community also equitably serves residents of all ages, ability levels, incomes, races, ethnicities, and other backgrounds. 

“These grants continue to lead to long-term, positive changes in communities across the country,” said Nancy LeaMond, AARP Executive Vice President and Chief Advocacy & Engagement Officer in a June 28 statement announcing the grant recipients funded in all 50 states, Washington, DC, Puerto Rico and the U.S. Virgin Islands.  

“This year, we are proud to support the largest number of projects in the program’s seven-year history, which will improve residents’ quality of life through tangible changes so everyone can thrive as they age,” says LeaMond.

AARP Community Challenge accepted applications across three different grant opportunities, including existing flagship grants in addition to new capacity-building microgrants for improving walkability and community gardens. New demonstration grants will focus on improving transportation systems, with funding support provided by Toyota Motor North America, and housing choice design competitions. 

True to the programs “quick action” nature, these projects MUST be completed by Nov. 30, 2023.

AARP’s newest funded recipients

“AARP Rhode Island is committed to working with local leaders to improve residents’ quality of life through tangible changes,” said AARP Rhode Island State Director Catherine Taylor. “We are proud to collaborate with this year’s grantees as they make immediate improvements in their communities to jumpstart long-term change, especially for Rhode Islanders 50 and over.”

“We are so excited to team up with AARP and city leaders to host a series of six free neighborhood walking tours focused on pedestrian safety and accessibility for all,” said one of this year’s grant recipients, Liza Burkin, lead organizer of the Providence Streets Coalition. “’Walk, Talk n’ Chalk’ will bring Providence residents over age 50 together with local street safety advocates, their Ward Councilor, and city employees who specialize in foot travel for a tour of the neighborhood, she says.

 “Each tour will use sidewalk chalk to foster conversation and capture needed changes to the built environment that will facilitate safe walking and rolling to neighborhood destinations,” she says.

“I am extremely excited and honored to have received the AARP Grant,” says Jack Lenz, Director of Development at the Providence-based West End Community Center, Inc.  Lenz was pleasantly surprised that his application was one of 311 chosen from 3,600 submitted.

Lenz noted that this was the first funded AARP grant, chocking it off to “beginner’s luck” because he is new to fundraising. 

According to Lenz, The West End Community Center run’s one of the largest food pantries in Providence. “We see many people struggling with food insecurity as well as access to fresh produce and transportation every day,” he said, noting that this “revolutionary method of growing vegetables was particularly effective for areas with of contaminated soil. “Growing vegetables directly out of the straw bales makes growing vegetables safer,” he says.

Lenz plans to seek out other grant opportunities to continue funding this gardening initiative to make it permanent and to expand it.

“The Mount Hope Community Center is very appreciative for being selected to receive AARP’s Flagship Grant, and we are looking forward to providing our Senior group with vital computer literacy workshops,” says Helen Baskerville-Dukes, executive director of the Mount Hope Community Center.  In working with our senior group, the need for computer literacy came up in their weekly meetings, she said.  

According to Baskerville-Dukes, it is the first time she has applied for an AARP grant.  With this program up and running, she plans on continuing to seek new grant funding to continuing to offer this impactful initiative.

Since the program’s debut in 2017, AARP has awarded $12.7 million through more than 1,060 grants in nearly 700 communities reaching 100 million people. The projects have been completed across all 50 states, Washington, D.C., Puerto Rico and the U.S. Virgin Islands, says AARP’s website. During this time AARP with AARP Rhode Island have awarded 17 grants and some $203,522 through the program to nonprofit organizations and government entities across the state.

According to AARP Rhode Island’s website, Rhode Island’s newest grant funded recipients were:

Providence Streets Coalition (PVD Streets). “Walk, Talk & Chalk” will bring people over age 50 and civic leaders together to sketch out – literally – the plan for improving safety, mobility, and access for people of all ages and abilities in Providence. The Providence-based PVD Streets, using AARP’s Walk Audit Toolkit, will organize six walk audit assessments throughout the Capitol City. The goal is to bring aged 50 and over residents to walk with city planners, elected leaders, and neighborhood organizers.

Mount Hope Community Center (MHCC)AARP’s grant funding will allow The Providence-based Mount Hope Community Center to host a weekly seniors’ group that has expressed interest in accessing computers to help them stay connected with family and friends, access online resources, and learn new skills. This grant funding will allow MHCC to purchase laptops and create a more modern computer lab for its members. This project will provide access to technology and trainings to improve our seniors’ quality of life, reduce feelings of isolation, and promote independence and engagement.

Bike Newport. The New Port-based bicycle advocacy organization’s project, “Cycling Without Age Ride,” provides a powerful opportunity for pilots and participants to connect in conversation with each other. Bike Newport will target two principal populations: Disabled veterans of all ages and senior veterans. Bike Newport will collaborate with the Rhode Island Chapter of Disabled American Veterans (DAV) and the Rhode Island Veterans Home Community Living Center in Bristol, RI, to bring the participants together by scheduling ride outings utilizing an electric-assist trishaw called “The Chat”. This project will counteract isolation and provide outdoor adventure and camaraderie for the participating people 50-and over and disabled veterans through piloted rides, with trained volunteer pilots.

West End Community Center. This project will distribute 200 straw bales to participating community members and demonstrate how simple safe and cost effective it can be to grow their own vegetables using this revolutionary urban agricultural method. Last summer the Providence-based organization built a straw bale garden consisting of 10 bales next to its parking lot where gardening brought people coming together in to grow vegetables to share with the community.

Taking a Look at Last Year’s AARP Grant Recipients  

Last year, AARP targeted $ 44,852 to fund four Rhode Island projects located in Central Falls, Woonsocket and Providence.   

Groundwork Rhode Island and its community partners received $ 14,000 to convert an underutilized green space in Central Falls for use by residents of all ages to enjoy, by installing seating and tables for dominos and chess.

The $10,278 grant that the Downtown Woonsocket Collaborative received transformed the outside location of the Aging Well senior center into a safe, inviting space for outdoor exercise as well as creating a gathering place for Woonsocket’s age 55 and over community. 

The Providence Streets Coalition’s $12,574 grant allowed the bicycle advocacy group (for a week) to transform a parking lane into a temporary urban bike lane.

Finally, the Southside Community Land Trust used its $8,000 grant to allow its youth staff to continue its work on beautifying outdoor spaces to cultivate herbs and vegetables for seniors in Providence to enjoy.  They also will collaborate with an artist to create a cookbook that preserves senior’s traditional recipes and stories. 

Rhode Island’s 39 Cities and Towns might glean ideas to enhance their communities for older residents by looking at the “best practices” listing of AARP Challenge Grants funded over the past two years.

For more details about AARP’s Livable Community Initiative, email livable@aarp.org.

View the full list of 2023 grantees and their project descriptions at aarp.org/communitychallenge and learn more about AARP’s livable communities work at aarp.org/livable.

View the full list of 2022 grantees and their project descriptions at 

https://states.aarp.org/rhode-island/congratulations-2022-community-challenge-grantees

Republican Study Committee, Social Security and Medicare

Published in RINewsToday on July 3, 2023

Last month, the Republican Study Committee (RSC) unveiled its 167-page FY 2024 “Protecting America’s Economic Security” budget proposal which calls for balancing the federal budget in seven years, slashes $16.3 trillion in wasteful government spending over ten years, and cuts $5.1 trillion in taxes. During the 118th Congress (2023 to 2024), 175 House Republican lawmakers from 38 states are RSC members. With over 70 percent of the House Republicans belonging to the RSC, the release of the proposed budget is a dependable indicator of where the chamber’s caucus stands on key legislative priorities.

The RSC annually releases its own budget proposal for the next fiscal year during the time when both House and Senate Budget Committees prepare official budget resolutions. The fiscal blueprint provides the House Republican Caucus with an opportunity to detail its wish list of spending priorities and also provides its position on social issues.

RSC’s FY 2024 budget, released on June 14, 2023, is made up of 220 individual legislative proposals and initiatives received from its members. Reflecting GOP values, the proposed budget would eliminate most funding for new abortion policies, Critical Race Theory, and “gender politics” initiatives, while ensuring adequate funding for the military, continued construction of a Southern border wall; rolling back “climate change” programs, and eliminating increases in funding for the IRS. It would also make 2017 tax cuts permanent as its provisions are starting to expire soon, and ensuring the nation’s energy independence; providing tax benefits to promote R&D: restricting free meals for students, and the Supplemental Nutrition Assistance Program, with the possibility of work/volunteer requirements.  

Aging groups are concerned that the RSC budget also takes aim at Social Security and Medicare programs. During 2023, the annual Social Security trust fund report warned that the program will only be able to continue paying out full benefits through 2034. The Medicare trust fund also reported that it could run low on funds by 2028, two years later than reported last year. While the Democratic platform seeks to raise caps on some programs to address this, the RSC’s budget proposal floated additional policies to financially fix these programs.

The RSC budget proposes “modest changes” to benefits for those who are not near full retirement age. For future retirees, it calls for raising the full retirement age (taking into account for increases in life expectancy) from age 67 to age 69 for those who turn 63 in 2033. It would also reduce benefits for future beneficiaries who earned a “higher salary” before retirement. Also, only “modest adjustments” to the Social Security program as it operates would be made but it doesn’t clarify the changes.   

As to Medicare, the RSC budget calls for requiring disabled people to wait longer before they can receive Medicare benefits. It pushes for turning Medicare into a “premium support system,” where seniors would receive a subsidy to be used to purchase private health plans competing against traditional Medicare.

Point/Counter Point

With the release of RSC’s budget, House lawmakers, the White House, and aging groups quickly issued statements touting their own positions. 

RSC’s Chairman Kevin Hern (R-Ok) noted the GOP’s conservative values could be found on every page of the budget blueprint. “Our budget proves that fiscal responsibility is the only way to lower inflation, grow the economy, cut federal spending, empower taxpayers, and protect small businesses. Congress controls the purse strings, but we, the House, has failed to produce a budget year after year after year. Everyone has to balance their budget – governors, mayors, businesses, families – but not Congress. Nearly every problem facing our government can be traced back to our failure to both pass a budget and stick to it. The Republican Study Committee has a budget, and it balances in just seven years. Our budget is real, and it’s floor-ready. It’s time to get our country back on track,” he said.

“For too long, irresponsible spending habits in Washington have made the cost-of-living more expensive for hardworking American families, and they are fed up with business-as-usual. The RSC budget prioritizes smart, common-sense policy to empower the American worker, and it cuts back on wasteful spending to pay for what’s important – just like families have to do every day. We are committed to protecting our country’s economic security and restoring fiscal sanity to our Nation’s finances,” says RSC Budget and Spending Task Force Ben Cline (R-VA).

On the other hand, Pennsylvania Congressman Brendan F. Boyle, Ranking Member of the House Budget Committee, gives the RSC the thumbs down: “This budget stands in stark contrast to the positive, hopeful vision put forward by President Biden and supported by House Democrats: a government that works for working families, an economy where the ultra-rich pay their fair share, and a country where everyone has the freedom to retire with dignity. I look forward to working with President Biden and Congressional Democrats to ensure House Republicans’ bleak vision for America does not become our reality.”

Social Security and Medicare

Social Security advocacy groups warn that the programs proposed by the RSC would slash the nation’s safety net programs, like Social Security and Medicare.

“This budget would destroy Social Security as we know it. It would raise the retirement age and slash middle class benefits. These changes would transform Social Security from an earned insurance benefit, which replaces wages lost in old age, disability, or death, into a subsistence-level welfare benefit,” warns Nancy Altman, President of Social Security Works.

“The budget fearmongers about Social Security’s modest shortfall (still a decade away) rules out any options for raising revenue, such as requiring billionaires to contribute more. That leaves benefit cuts as the only “solution.” In other words, they want to cut benefits now to avoid cutting them later, which isn’t a solution at all. Indeed, the budget will increase the number of workers who will have no ability to retire while maintaining their standard of living,” says Altman.

“A particularly cruel provision would force disability beneficiaries to wait five long years (instead of the current two, which is already too long) before becoming eligible for Medicare benefits. Outrageously, this change would deprive some of the most medically vulnerable people in America of health care. This provision alone would inevitably lead to more medical bankruptcies and increased homelessness,” notes Altman. 

Correcting misinformation on Social Security and Medicare

The Washington, DC-based National Committee to Preserve Social Security and Medicare is launching a new public education campaign — sponsored by AARP — to correct misinformation about Social Security and emphasize the program’s value to American workers, especially to communities of color.  The campaign, “Social Security: Here Today, Here Tomorrow,” is intended to debunk myths and give workers the facts about their vital earned benefits.  The campaign includes a series of public town halls across the U.S. between June and October, 2023,  featuring prominent Social Security experts and advocates, Social Security officials, and financial advisors.

Max Richtman, President and CEO of the National Committee to Protected Social Security and Medicare says, “There is a ‘doom and gloom’ narrative about Social Security today. ‘The program is going bankrupt.’ ‘It won’t be there for future generations.’ ‘Politicians are stealing from Social Security.’ None of that is true. We want the public to understand that Social Security is there for them today — and it will be there for them tomorrow. And not just in retirement, but in case of disability, the death of a family breadwinner, or the retirement of a spouse. That’s what this campaign is all about.” Richtman will moderate some of the upcoming town halls.

“Social Security is a financial lifeline to millions of American seniors, but it is especially crucial to the Black community.  Black Americans traditionally rely on Social Security for monthly income more than other groups do, due to wage and job discrimination, diminishing employer-provided pensions, and challenges in saving for retirement. “Like all Americans, the Black community pays into Social Security with every paycheck — and deserves to know that the government will keep its promise to provide baseline financial security when they encounter what President Franklin Roosevelt called ‘the hazards and vicissitudes’ of life,” says Richtman.

Here is a schedule of the town halls. Admission is free. Reservations are required.

Philadelphia, PA, July 26, 2023 at Center In The Park

Lansing, MI, August 28, 2023 at AARP Michigan Office (To be televised later on WLAJ-TV/ABC)

Milwaukee, WI, September, 2023 (date & location TBA)

Las Vegas, NV, October, 2023 (date & location TBA)

Visit www.socialsecurityheretoday.org for registration information. Those unable to attend the free town halls in person will be able to watch live video streams.

Here is the text for the RSC’s FY 2024 Budget, Protecting America’s Economic Security: https://hern.house.govPuploadedfiles/202306141135_fy24_rsc_budget_print_final_c.pdf

House GOP leadership is committed to holding a vote to approve the RSC budget this year.  With a razor thin majority in the House and with Democrats stringing opposing, the RSC budget is unlikely to pass the lower chamber. 

In an interview with House Speaker Kevin McCarthy that aired Sunday, Jan. 29, 2023, on “Face the Nation,” McCarthy stated, “Medicare and Medicaid slashes are off the table.”  But with three fourths of the House GOP caucus endorsing the RSC budget, making cuts to Social Security and Medicare, older voters must make it clear to their House lawmaker, “Don’t touch Social Security and Medicare.”