AARP Takes On High Rx Prices

For too long, Americans have paid the highest prices in the world for medicine. That’s why, a few years ago, AARP launched a massive campaign to take on the most powerful special interest group in Washington: the big drug companies. I’m proud to say we won—maybe the first time anyone has beat the drug companies—and helped pass a groundbreaking new prescription drug law that is finally providing relief for millions of older Americans.

One of the biggest changes from this law went into effect on January 1 this year: There’s now a $2,000 yearly limit on out-of-pocket prescription drug costs for people on Medicare drug plans. This is huge. Once you reach that $2,000 cap, you won’t have to pay anything for your prescriptions the rest of the year.

AARP research shows that 94 percent of Medicare Part D enrollees who hit the cap will save money, with the average person saving $2,474 a year. But even more important is the peace of mind this brings. There are so many people who had to forgo treatments they just couldn’t afford—or who skipped doctors’ appointments because they were afraid a bad diagnosis would bankrupt them. Those days are over.

In addition, there’s a $35-a-month cap on insulin under Medicare and penalties for drug companies that raise prices faster than inflation.

And even bigger changes are coming. For the first time ever, Medicare is negotiating drug prices. Last year, Medicare negotiated lower prices on 10 expensive drugs commonly used by older adults, and it is negotiating prices on 15 more this year. It’s crazy that our government just paid whatever price drug companies dictated for these drugs. Those days are also over. Starting next year, you’ll see lower prices kick in.

But the fight isn’t over. Americans still pay way too much for prescription drugs. AARP is fighting to protect Medicare’s power to negotiate lower prices. We’re also advocating for bipartisan legislation to crack down on abuses by prescription drug middlemen, called PBMs, and we’re pushing new laws to stop drug companies from abusing patent laws that keep affordable generics off the market.

AARP won’t stop until every American can get the medications they need at a price they can afford.