Nevadans Need Fair Drug Prices. Now.

By Maria Moore, AARP Nevada State Director

There are few political issues that an overwhelming majority of Americans support, across party lines. One of the rare exceptions is the need to bring down the prices of prescription drugs. For far too many years, Americans have been forced to pay among the highest drug prices in the world. People are fed up, and they are calling on Congress and the President to take action.

You can view the impact of high Rx prices on Nevadans HERE

At AARP, we have tracked the prices of the most commonly used prescription drugs for well over a decade. Every year, they have risen faster than the prices of other goods and services – often much faster. Our most recent Rx Price Watch Report, which looked at 260 widely used brand name medications, found that their prices rose more than two times as fast as general inflation in 2020, in the middle of a global pandemic and financial downturn!

Prices are rising so fast that some Nevadans are being forced to choose between the medications they need and other necessities, like rent and groceries. The average senior takes four or five prescriptions each month, usually on a chronic basis. With an average annual price tag of $6,600 for just one brand name drug, that quickly adds up to more than the median annual income for people on Medicare. To give one example, here in Nevada, we know there are about 231,000 people living with cancer. One common cancer medication, Revlimid, jumped from an annual price of $186,234 in 2015 to $268,319 in 2020. These price increases are simply unsustainable.

So what can Congress do that will actually bring down the outrageous price tags for prescription drugs? Here are three solutions that we think would have the greatest impact:

• Allow Medicare to negotiate with drug companies. Right now, the program is largely stuck paying whatever price pharmaceutical companies demand – leaving the government on the hook for sky-high costs that increase every year. Medicare spends $129 billion each year on prescription drugs. By allowing the program to use its considerable buying power to negotiate, both seniors and taxpayers could see significantly lower costs.
• Create a hard out-of-pocket cap on Medicare Part D spending. Some older adults are still paying tens of thousands of dollars for their prescription drugs, despite entering the “catastrophic coverage” phase of their part D coverage. We need to ensure that no one is paying through the roof to afford the medications they need to stay healthy.
• And finally, penalize drug companies that raise their prices faster than the rate of inflation. Brand name drug prices have risen faster than inflation every single year that AARP has tracked this data. If Big Pharma has to pay back some of that money in the form of rebates, it could slow price increases moving forward.

We are fighting for change on behalf of our 320,000 members in Nevada – and for all Nevadans. You pay for the high prices of prescription drugs regardless of whether you’re taking one yourself. In addition to co-pays at the pharmacy counter, we pay for medication costs through our insurance premiums and the taxes that fund government programs like the VA, Medicare and Medicaid.

It’s not fair that Americans are stuck paying the highest prices in the world for our prescription drugs. The President and Congress agree we need to lower drug prices, now it’s time for them to get it done.

See all AARP is doing to lower drug costs HERE