Page 20 - NAACP Playbook 7.15.19

What does AARP say to the pharma’s response that higher drug prices are necessary to fund
innovation?

This is a specious, false argument. Drug makers spend far more on advertising and administration than
they do on research and development. CEOs of pharmaceutical companies recently testified before
Congress that they make profits in every country in which they sell the same pharmaceuticals as are
available in the U.S. but at lower prices in other countries.

What is AARP’s position on PBMs?

AARP welcomes a broad look across the entire drug supply chain, including pharmaceutical
manufacturers, insurers, pharmacy benefit managers, hospitals, doctors, and pharmacists, to find ways
to help drive down drug prices.

To do that, we must deal directly with the root cause of high drug prices: price gouging by drug
companies.

Is AARP supporting lower drug costs because UHC wants to save money on their insurance plans?

AARP’s advocacy for public policy is based on what is best for our members and all 50+ Americans, as is
our partnerships when we license our name to others to provide products or services that we believe
meet the needs of 50+ Americans. Our advocacy for public policy is in no way influenced by any
branded product or service.

Like hundreds of other nonprofit organizations – as diverse as Little League Baseball, the American
Medical Association and American Farm Bureaus – AARP earns revenue to fund our mission of
improving American lives by licensing our brand to carefully selected providers of products and
services that are highly suited to our membership.

AARP Services Inc., a taxable subsidiary of AARP, provides quality control over branded products and
marketing practices of the providers.

What does AARP think of the president’s budget proposal?

The President’s budget was just released yesterday and we’re still evaluating the details. We are
heartened that President Trump’s budget continues to highlight the need to address prescription drug
prices, but we’re also concerned about proposed cuts to programs important to seniors. That’s all we
have for you right now.

Does AARP discriminate against people with pre-existing health conditions?

For over six decades, AARP has been a nonpartisan, nonprofit advocate for quality affordable health
insurance for older Americans, which is one reason why AARP strongly supported the requirement to
provide access to comprehensive coverage to anyone irrespective of health status. It is also why AARP
has previously endorsed legislation to ensure that people with preexisting conditions also have access
to Medigap coverage, which continues to be AARP’s policy today.