Americans Who Are Not Taking Advantage Of Lower- Cost Generic Prescriptions Are Wasting Their Hard-earned Money - AARP

Main Category: Medicare / Medicaid / SCHIP
Also Included In: Pharma Industry / Biotech Industry
Article Date: 18 May 2008 - 6:00 PDT

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According to a new report released by AARP, manufacturer prices of 185 widely used generic drugs in Medicare Part D decreased by an average of 9.6 percent in 2007. A report from AARP earlier this year showed that manufacturer prices of 220 of the most commonly used brand-name drugs by Part D enrollees increased by more than seven percent during the same period.

"Americans who are not taking advantage of lower-cost generic prescriptions are wasting their hard-earned money," said John Rother, AARP Director of Public Policy. "As the economy continues to tighten, people need to look for cost-savings at every opportunity. Ask your physician if a lower-cost generic drug might be an appropriate treatment option. The brand-name pharmaceutical industry creates many valuable drugs, but often more expensive, brand-name drugs are not necessarily any more effective than their generic "cousins" that you won't see advertised on TV."

Of the 185 generic drugs AARP studied in 2007, there were no price changes for 133 generic drugs. Forty-three generics drugs had price reductions up to 69.5 percent, and only nine generic drugs had price increases. The generic drugs with the largest decrease in price are metformin (-9.5%) which treats diabetes, lisinopril (-54.2%) which treats high blood pressure and mirtazapine (-49.8%) which treats depression.

"Generic drugs are bringing down the costs of drug for millions of Americans," added Rother, "but more needs to be done to speed generic drugs to market and protect against loopholes that allow pharmaceutical companies to block or delay entry of these lower priced alternatives."

AARP continues to fight to make prescription drugs more affordable for all Americans. The organization supports federal legislation to allow the Food and Drug Administration to create a safe pathway for generic biologics and advocates for removing barriers that delay the timely introduction of lower cost generic drugs.

The generic drug price study is a part of the AARP Public Policy Institute Watchdog series. Earlier this year, Watchdog reported on brand-name drug prices and a third study from this series on specialty drugs will be released summer 2008. The definition of specialty prescription drugs for the purposes of this report is a prescription drug that is (1) administered by injection (not including insulin); (2) has a total prescription cost greater than $1,000 per prescription; or (3) has a total cost per day of therapy greater than $33 per day.

For the complete AARP PPI Watchdog Generic report visit here.

AARP provides valuable information to the public on their website to help consumers find lower-priced alternatives for drugs they may be taking at: http://www.aarp.org/comparedrugs.

Visit http://www.AARP.org to learn more about how you can make a difference.

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, published bimonthly; A ARP Bulletin, our monthly newspaper; AARP Segunda Juventud, our bimonthly magazine in Spanish and English; NRTA Live & Learn, our quarterly newsletter for 50+ educators; 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, a nd sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

http://www.AARP.org