One in five fall into the gap, but few climb out
Jackson, MS—AARP’s Health Action Now campaign turns its attention this week to the growing problem of prescription drug costs and reducing the gap in prescription drug coverage for people in Medicare. Closing the Part D doughnut hole could save people in the program thousands of dollars in drug costs and keep them healthier by ensuring they can afford their medications.
The Association is pressing lawmakers to lower individuals’ drug costs as a part of health reform, including closing the doughnut hole—which forces more than 3 million people in Medicare to pay their full drug costs each year]—and increasing the availability of generic drugs, particularly generic versions of costly biologics.
“Prescription drug coverage has literally been a life-saver for people in Medicare, but the widening doughnut hole is still leaving too many Americans on their own to face skyrocketing drug costs,” said Sherri Davis-Garner, AARP Mississippi Senior State Director. “We know that higher costs lead people to skip doses or give up their prescriptions entirely, putting their health in jeopardy and driving up long-term costs.”
AARP is working with leaders on Capitol Hill to close the doughnut hole, which is predicted to top $6,000 by 2016. Today, 3.4 million people fall into the gap each year, while only 15 percent of those are able to get out and receive catastrophic coverage.
AARP is also fighting to bring more generic drugs to market, particularly generic versions of costly biologic drugs used to treat diseases like cancer and multiple sclerosis. Unlike traditional chemical drugs, biologics are created from living organisms and have no FDA approval process for generic versions. Without generic competition, biologic makers are free to charge thousands of dollars per month, even for drugs that have been on the market for many years.
Davis-Garner added: “Since the 1980s, safe, affordable generic drugs have helped Americans save billions of dollars on their health care bills. With biologics now making up a large and growing share of the market, it’s time to bring those same savings to people taking these breakthrough drugs while protecting medical innovation.”
AARP has endorsed the “Promoting Innovation and Access to Life-Saving Medicine Act” (H.R. 1427/S. 726), which would create an FDA approval process—similar to that for traditional prescription drugs—for generic biologic drugs.
In addition, AARP is working to help the four million low-income Americans who are eligible for the Medicare Part D Low-Income Subsidy, which greatly reduces a person’s drug costs and has no gap in coverage. The Association is fighting to increase access to the benefit by raising and ultimately eliminating the asset limit, expanding eligibility, standardizing eligibility rules, and raising awareness about the program.
AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world's largest-circulation magazine with over 34.5 million readers; AARP Bulletin, the go-to news source for AARP's 40 million members and Americans 50+; AARP Segunda Juventud, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
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