Tag Archives for pharmaceutical costs

Read Between the Lines of Political Campaign Literature

Published in Pawtucket Times on September 9, 2002

Tomorrow’s primary election means time has now run out for gubernatorial state legislative and congressional candidates.

For the past several months, these political candidates attended hundreds of public events scattered throughout the Ocean State, bearing gifts of political stickers, bumper stickers and campaign literature at every stop they make.

No doubt you will agree that this election cycle was no different than any other one. Older Rhode Islanders were bombarded with campaign literature outlining candidates’ positions on specific senior issues.

During this year’s campaign, seniors repeatedly told political candidates to fix the problem of rising pharmaceutical costs. It was no surprise that one Democratic candidate told me at a recent fundraiser in Pawtucket’s Slater Park that the hot topic for seniors this year was the issue of costly pharmaceuticals, concerns he’d heard over and over again at coffees and events. This would be a primary issue his campaign would address, he assured.

But with complicated senior issues, like how to pay for costly pharmaceutical drugs, how can you get beyond the smoke and mirrors of political campaigns?

Here’s my advice – seniors must not believe everything they read. They must become savvy shoppers when reading a candidate’s position papers and/or campaign literature about their solutions to aging policy issues.

One must listen closely to the candidates, and more importantly, read between the lines.

For instance, Myrth York, calls for Rhode Island to negotiate tough deals with the pharmaceutical industry to reduce prices, insisting these companies should provide Rhode Island with the same discounts that they provide government agencies and federal programs.

Furthermore, she   goes on to say that Maine has created a similar program that other states across the country are starting to replicate.

“Good idea, but not applicable in the near future,” said Rep. Antonio Pires, who is running against the former state senator for governor in the Democratic primary.

“The pharmaceutical industry has tied that initiative up in the courts and the program is not in operation yet,” he told All About Seniors. While York’s idea may be a good one, can it get implemented quality?

Democrats gubernatorial candidates Pires, York and Attorney General Sheldon Whitehouse all call for the expansion of the state prescription drug program Rhode Island Pharmaceutical Assistance Program to Elders (RIPAE) to help older Rhode Islanders afford medication they need, via a Medicaid waiver to bring in federal dollars to pay for the expansion. This solution which everyone supports, sounds too good to be true.

Again, you must read between the lines.

Don’t expect this Medicaid waiver to materialize overnight, next week or even by next year. Some say that it will take some time to get this federal fix in place.

So, the quickest solution to lowering the cost of costly prescriptions drugs may well come at the federal rather than the state level, from Congress itself.

Political posturing about a particular party’s legislative proposal may look good in print, in a campaign ad or in a political commercial, but it won’t ultimately make prescription drugs cheaper in the near future.

The Democrat and Republican approach to providing seniors with prescription relief won’t gain the needed momentum for passage by Congress, so a bipartisan compromise is needed.

Now it’s on the shoulders of the Rhode Island delegation in Congress to work together to craft a meaningful compromise.

While the political candidates debate the pharmaceutical costs, they must not forget the other senior issues that must be addressed.

There is a need to being more assisted living facilities on line for moderate and low-income seniors. Don’t forget the need for affordable option for frail or low-income seniors.

Add to these housing issues the need to adequately fund a seamless continuum of long-term care services, from nursing facilities to community-based services. Adequate funding and resources must be allocated to state agencies to perform their legislative oversight responsibilities.

There must also be continued effort and energy directed by state policymakers to solve the state’s severe staffing shortage that continues to afflict both nursing facilities and home health agencies.

One lawmaker told me that the state budget deficit could well reach $ 250 billion. If true, this is not good news for those who want long-term solutions and not Band-Aid fixes to problems facing seniors.

Be a savvy shopper when you are reviewing the piles of campaign literature dropped at your door. It may look pleasing to the eye, but a severe budget deficit may ultimately make that promise just pie in the sky.

Lawsuits Filed to Put Brakes on Rising Pharmaceutical Costs

Published in Pawtucket Times on June, 2, 2002

In conjunction with seniors advocates lobbying Congress for Medicare prescription drug benefits and state legislatures for financial relief in paying for the spiraling costs of pharmaceuticals, the AARP and other aging groups, along with state attorney generals, are going to court to put the brakes on spiraling prescription drug costs.

Ron Pollack, executive director of Families USA, called for pharmaceutical companies to not delay generic drugs from coming quickly to market during an April forum on Capitol Hill, which was held to spotlight the anti-competitive practices of the prescription drug industry.

Delaying or preventing the widespread use of generic drugs endlessly increases costs for consumers, including Medicare beneficiaries as well as  third-party payers of health care, Pollack stated.

“It improperly extends drug monopolies that enables the drug companies to profit at the expense of everyone else,” he said.

The lawsuits bring litigated are intended to make the pharmaceutical marketplace work for everyone,” Pollack said, noting that it was ironic that the drug industry goes to great lengths to prevent the regulation of prices in the name of promoting a free market.

Legal initiatives are now a part of a broad AARP drive to reduce high drug costs that hit seniors hard in their pocketbooks. Washington’s largest aging advocacy group is ratcheting up its efforts to lower drug costs by joining three important cases against prescription drug manufacturers that have blocked the availability of lower-priced generic equivalents.

AARP CEO Bill Novelli has announced that his group’s attorneys will serve as co-counsel in three lawsuits that involve charges of patent abuse, suppression of generic competition and collusive agreements with generic manufacturers.

“Geriatric drugs approved by the Food and Drug Administration (FDA) at equivalents give consumers quality drug alternatives at reasonable prices,” Novelli said today. “Our aim is to help people get affordable access to the drugs they need.”

The lawsuits mark the first time that AARP attorneys will co-counsel in federal anti-trust litigation against drug manufacturers, he said.

AARP’s legal actions come against a backdrop of rising prescription drug costs. Spending for brand-name drugs has tripled in the last decade, rising from $ 40.3 billion in 1990 to $ 121.8 billion in 2000, and is expected to more than triple to $ 414 billion in this decade. Generic drugs typically cost 50 percent or less than brand-name drugs.

According to the AARP, millions of dollars are at stake annually for older Americans, who account for 42 percent of the U.S. prescription drug consumption, and other consumers who purchased prescription drugs.

The three ongoing class action cases – all in federal court – are In Re: Buspirone Antitrust litigation, In Re: K-Dur Antitrust and In Re: Tamoxifen. The AARP chose the cases because they involve important drugs that are widely used by Americans age 50 and over.

AARP attorneys are participating in these cases as co-counsel in order to ensure that a strong consumer voice is represented throughout the proceedings, including any settlement.

AARP attorneys will serve as co-counsel in the three above-mentioned cases with attorney’s associated with the Prescription Access Litigation Project (PAL), a coalition of consumer and health care organizations that was launched last year by Boston-based Catalyst.

With AARP name recognition, resources and clout, it is easy to see why Community Catalyst Executive Director Rob Restuccia is ecstatic about AARP’s decision to joint three of PAL’s class action lawsuits.

“The PAL coalition welcomes the firepower of the AARP, firepower that will strengthen our capacity to challenge the anti-competitive activities of some drug companies,” he said.

In the midst of AARP’s lawsuits here in Rhode Island, low-and moderate-income seniors and disabled will now see lower pharmaceutical costs with the passage of the three legislative proposals that would expand drug coverage of the state’s Rhode Island Pharmaceutical Assistance for the Elderly program.

A thumbs-up goes to the Rhode Island General Assembly for the wisdom of acting on these legislative proposals.

Meanwhile, at the federal level, Rhode Island U.S. Reps. Patrick J. Kennedy and James R. Langevin are gearing up for expected House debates in early June over legislation to create a drug benefit for the Medicare Program. Stay tuned for this one.

Lawmakers Consider Proposals to Reduce Costs of Prescription Drugs

Published in the Pawtucket Times on April 15, 2002

Amid the political bickering over the separation of powers bill and the controversy over allowing Rhode Islanders to vote next November on bringing gambling to the Ocean State, the Rhode Island General Assembly is getting around to considering three legislative proposals with broad public and bipartisan political support.

In the shadow of a huge state budget deficit, bills strongly endorsed by both senior and disabled advocates, would make pharmaceutical costs affordable while not costing the state one penny.

It was standing room only last Wednesday in Room 35 at a House Finance Committee hearing, chaired by Chairman Steven Costantino (D-Providence), of the subcommittee on human services. The legislative hearing, lasting almost four hours, drew the attention of the Rhode Island Commission on Aging, the Forum on Aging, the Gray Panthers, and Choices, to name a few.

Dozens of aging and disability advocacy groups, staffers of the Department of Elderly Affairs and the Department of Human Services, and lobbyists for the powerful pharmaceutical industry came to listen to testimony that would officially kick of the state’s debate on lowering pharmaceutical costs for seniors and persons with disabilities.

Under on legislative proposals (H 7291/S 2729), the state Department of Human Services would seek a waiver from the federal government allowing Rhode Island to use Medicaid funding to pay for prescription drugs for low-income seniors with incomes of up to $ 17,720 and couples with incomes up to  $ 23,880.

This bill, authored by Lt. Gov. Charles Fogarty and sponsored by Rep. Constantino and House Finance Chairman Gordon Fox, would enroll approximately 90 percent of the 37,500 seniors now enrolled in the Pharmaceutical Assistance for the Elderly Program (RIPAE) – the state’s pharmaceutical program. Because these seniors would now quality for prescription drug coverage under Medicaid, all Food and Drug Administration (FDA) drugs would be covered, not just those currently covered under RIPAE. Seniors would likely pay small co-payments, probably less than $ 10, rather than the 40 percent co-payments currently charged.

At this hearing, testimony was gathered on two other Fogarty legislative proposals that would make prescription drugs  more affordable to seniors and persons with disabilities who are not covered by the waiver. One bill (H 7290) would allow seniors enrolled in the RIPAE – approximately 5,000 seniors – to buy prescription drugs not currently covered by RIPAE at the discounted state price.

The second (H 7524) would allow 4,300 low-income persons on Social Security Disability Income (SSDI) who are between ages 55 and 65 to become members of RIPAE and purchase prescription medications at the state discounted rate.

Under both of these legislative proposals, the state would be able to obtain the manufacturer’s rebate available through RIPAE. Rebate funds gained from drug purchases by persons in the new SSDI part of RIPAE would accrue in a special fund to be used to subsidized the cost of these drugs in the future. This legislative initiative, like the other two, would be of no cost to the state.

There’s a very good reason why these proposals should be enacted, says Fogarty, who chairs the state’s Long-Term Care Coordinating Council. “Far too many of our seniors still face great burdens in paying for their medications. If your income is less than $ 10,000 per year – which is the median income for a person on RIPAE – having to pay $ 1,000 or more out of pocket for one’s prescription is a big problem.

“This year, in spite of our budget woes, we have a tremendous opportunity to greatly expand our prescription assistance program for seniors and persons with disabilities. By taking advantage of federal Medicaid dollars, we can save seniors millions and we can do these expansions with no added costs to the state,” Fogarty adds.

Susan Sweet, who represents CHOICES, a home and community advocacy agency and the Rhode Island Minority Elderly Task Force, says the expansion of RIPAE is critical, especially in light of the federal government’s failure to create a federal Medicare pharmaceutical benefit.

“Being able to pay for prescriptions avoids sickness, unnecessary hospitalizations and admissions to nursing homes, saving millions of dollars and many years of productive lives for seniors,” says Sweet. “Pharmaceutical products are the current and future medical miracles, and health insurance is inadequate without adequate drug cover, she says.

Shirley Kaiser, president of the Rhode Island Gray Panthers, whose group has battled years for putting the brakes on rising pharmaceutical costs, says seniors are giddy with the news that Rhode Island may finally move to addressing the problem.

The Gray Panthers strongly endorse the legislative proposals, and she believes this is the year for enactment of a legislative remedy.

At the Rhode Island General Assembly, some bills are enacted while many die during the legislative process, even those with great merit.

In light of the state’s fiscal uncertainties, lawmakers now have a rare opportunity to assist older Rhode Islanders and persons with disabilities in obtaining affordable prescription drugs at no cost to the state coffers.

With the widespread support and endorsement of these legislative proposals from state officials, aging and disability advocacy groups, and the pharmaceutical industry, for me it’s a no brainer – pass these bills and quickly sign them into law, says Kaiser.

It is now time to put this longtime aging issue behind us and move forward to other pressing matters like creating and paying for a seamless long-term care system.

Ensure passage of the three bills by telling your representatives and senators how important these three proposals are for you, and request their passage.