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New AARP Report Highlights the Need for Continued Action on Rising Drug Costs
U.S. drug prices climb while other countries see declines
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A new AARP Public Policy Institute report finds Americans are paying more for many brand-name prescription drugs than those in other developed countries, where prices often fall.
The report analyzed 25 top-selling brand-name drugs. In the U.S., their prices rose 81% on average after market entry, while prices for the same drugs fell 13% on average in 19 other high-income countries. The analysis also indicates that significant price reductions achieved through Medicare drug price negotiations do not necessarily translate into lower prices for consumers.
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For Georgia’s more than 1.8 million residents age 65 and older, rising prescription drug costs can create financial hardship and make it harder to afford essential medications.
Medicare drug price negotiation is already delivering savings for millions of older Americans, this report shows that broader reforms are still needed to make prescription medications affordable for everyone, according to Leigh Purvis, AARP’s principal for prescription drug policy and author of the report.
Medicare Reforms Are Helping
AARP-backed prescription drug reforms are already lowering costs for many Medicare beneficiaries, including:
- Lower negotiated prices for selected Medicare-covered drugs beginning January 2026.
- A cap on annual out-of-pocket prescription drug costs under Medicare Part D.
- A monthly insulin cost cap for Medicare beneficiaries.
- Recommended vaccines covered at no cost.
- Inflation rebates when drug prices rise faster than inflation.
AARP continues to advocate for policies that make prescription drugs more affordable and accessible for all Americans.
Click here to read the full report and learn more.
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