Page 13 - World Pride Playbook June 26

Too many Americans—who rely on medicines for a range of serious medical conditions, like seizure
disorder or heart conditions—are being forced to choose between the medicines they need to survive
and paying for food or rent.

These outrageously high prices affect all Americans by increasing taxes, insurance premiums, and out
of pocket costs.

Does AARP support importation of drugs? Is AARP worried that bad drugs from countries like China
will hurt people?

Americans pay the highest prescription drug prices in the world – often double what other countries
pay for the same medicine. The Food and Drug Administration (FDA) has the authority to do this but
chooses not to. They have done so in the past in a crisis.

AARP is among the groups that are fighting for lower prices by allowing the safe importation of the
same prescription drugs available in the U.S. from other countries at lower prices.

Setting up a system that would ensure the safe and legal importation of less expensive prescription
drugs will lower costs and add competitive pressure on drug makers to lower the prices they set for
sales in the U.S., allowing consumers to save on medications.

Does AARP support moving Medicare Part B drugs under Part D to bring down the prices on these
expensive drugs?

AARP is acutely aware that Medicare spending on Part B drugs has grown substantially in recent years,
particularly on many high-cost specialty products. Part B prescription drug spending more than
doubled from $11 billion to $26 billion between 2007 and 2015.

AARP recommends that the Department of Health and Human Services (HHS) undertake an analysis of
the potential impact of shifting reimbursement of certain drugs from Medicare Part B to Part D. For
example, we have concerns about the additional cost-sharing that patients could face.

Does AARP support passing along drug rebates to consumers at the point of sale?

AARP has strong concerns about the Administration’s proposal to change how rebates are used in
Medicare Part D. Their proposal could raise premiums significantly and would cost Medicare nearly
$200 billion over the next 10 years. We support solutions that target the root of the problem – the
price set by drug manufacturers.

Does AARP support the FAIR Drug Pricing Act that would have required drug companies to submit a
report to HHS when they increased the prices on their drugs by more than 10% during the year or
25% over 3 years?

Yes, AARP supports the FAIR Drug Pricing Act, which would require greater price transparency. For
years, prescription drug prices have increased at rates that are many times higher than inflation.

AARP is calling on Congress to require drug manufacturers to explain why they price their products so
high and why those prices increase so much over time.