AARP Massachusetts Speaks Out Against High Rx Prices

TESTIMONY OF MIKE FESTA, STATE DIRECTOR OF AARP MASSACHUSETTS

ON

HOUSE BILL NO. 729 - AN ACT TO ENSURE PRESCRIPTION DRUG COST TRANSPARENCY AND AFFORDABILITY

AND

SENATE BILL NO. 771 - AN ACT RELATIVE TO PHARMACEUTICAL ACCESS, COSTS AND TRANSPARENCY

BEFORE THE JOINT COMMITTEE ON HEALTH CARE FINANCING

BOSTON, MA

JULY 13, 2021

Good morning.  I am Mike Festa, State Director of AARP Massachusetts.  AARP is a nonprofit, non-partisan membership organization for people 50 and over with nearly 38 million members nationwide.  We have more than 750,000 members here in the Commonwealth.  Thank you for the opportunity to address you on behalf of our members.  As members of the Massachusetts Prescription Drug Affordability Coalition, we work with other stakeholders to address these important issues too. We urge you to favorably pass HOUSE BILL NO. 729 - AN ACT TO ENSURE PRESCRIPTION DRUG COST TRANSPARENCY AND AFFORDABILITY AND SENATE BILL NO. 771 - AN ACT RELATIVE TO PHARMACEUTICAL ACCESS, COSTS AND TRANSPARENCY. 

Prescription drug coverage plays a vital role in the health and financial security of the older population.  For older adults, prescription drugs are critical in managing their chronic conditions, curing diseases, keeping them healthy and improving their quality of life. And this is good news.

Appropriate use of prescription drugs may prolong life, improve quality of life, and postpone or replace the need for intensive, often expensive medical treatments.  Older Americans use prescription drugs more than any other segment of the U.S. population, and unfortunately many older Americans – particularly Medicare beneficiaries – continue to struggle to afford their prescription medication. This is not such good news.

Americans are sick and tired of paying the highest prices in the world for their prescription drugs.  They can't afford to pay more than 3 times what people in other countries pay for the same medicine. And, people shouldn't have to choose between buying medicine and paying for food or rent.

In 2018, the price of brand-name prescription drugs widely used by older Americans went up at more than twice the rate of inflation. In addition, prices for widely used drugs have increased faster than inflation every year for over a decade.

The bottom line is it is wrong that even during a pandemic and financial crisis, drug companies increased the prices of over 1,000 drugs last year, including those for chronic conditions that people over age 50 depend on.

It is time for action to lower drug prices and House Bill No. 729 and Senate Bill No. 771 would take steps to get there.

Concluding Observations

Increases in the retail price of prescription drugs affect both patients and the larger economy.  If recent trends in prescription drug prices and related price increases continue, it will almost undoubtedly become more difficult for patients to access and afford necessary medications.  This will lead to poorer health outcomes and higher health care costs in the future.

It is incumbent on policy makers interested in reducing the impact of high prescription drug prices to focus on options that drive innovation while also protecting the health and financial security of consumers and taxpayer funded programs like Medicare and Medicaid.

The aging population of Massachusetts will continue to grow along with its unique issues related to financial, health and long term care needs.  Both planning and action by the Commonwealth are required to make our society work well on behalf of all its residents.  AARP urges you to address these issues now.

In conclusion, to the extent possible, the Commonwealth should take any and every action that ensures our residents have access to affordable prescription drugs that keep them healthy and living with dignity.

We urge you to favorably pass HOUSE BILL NO. 729 - AN ACT TO ENSURE PRESCRIPTION DRUG COST TRANSPARENCY AND AFFORDABILITY AND SENATE BILL NO. 771 - AN ACT RELATIVE TO PHARMACEUTICAL ACCESS, COSTS AND TRANSPARENCY.  We look forward to working with you and would be happy to assist you in any way possible on these important issues.  Thank you.