WASHINGTON, June 12, 2019 /PRNewswire/ -- Eighty-six
percent of AARP members support the administration's proposed
rule to reform the rebate system in Medicare Part D, according to a
nationwide Morning Consult survey commissioned by the
Pharmaceutical Research and Manufacturers of America (PhRMA).
Despite overwhelming support from their membership, AARP continues
to oppose the rebate rule while receiving hundreds of millions of
dollars in revenue from insurance companies every year.
In Medicare Part D, insurers and pharmacy benefit managers
(PBMs) negotiate significant rebates on medicines, but often don't
share those savings with seniors directly. The rule proposed by the
Department of Health and Human Services (HHS) Office of Inspector
General (OIG) would change this by ensuring the rebates negotiated
with biopharmaceutical companies are entirely passed through to
seniors at the pharmacy counter.
Even after being told it may increase premiums by $3 to $6 per month,
the vast majority of AARP members -- 73% -- support the proposed
rule since savings at the pharmacy counter would more than offset
premium increases. For example, a senior with diabetes taking five
medicines, including insulin, could save nearly $900 a year, according to Avalere Health.
In comments submitted on the rebate rule (see here and here),
AARP consistently opposes it, echoing concerns raised by insurance
companies, from whom AARP has received the vast majority of their
revenue in recent years. Eighty-five percent of AARP members say
they are disappointed in AARP for siding with insurers in
opposition to the rebate rule, according to the new survey.
"We are fighting to lower costs for seniors by forcing insurance
companies and middlemen to share negotiated savings at the pharmacy
counter," said PhRMA executive vice president of public affairs
Robert Zirkelbach. "Yet AARP is
choosing to stand with insurance companies rather than their own
members. It begs the question: Who is AARP really fighting
for?"
The new advertisements will be featured in print, digital and
social channels in Washington,
D.C., and select states. The first print advertisement
highlights AARP members' support for rebate reform and AARP's
alignment with insurance companies in opposition to it.
View the new print advertisement here.
Key facts about AARP's relationship with insurance
companies:
- Since 2010, AARP has made more than $4.5
billion in royalties and investment income as a result of
their relationship with insurance companies. AARP consolidated
financial statements available here: 2010, 2011, 2012, 2013, 2014,
2015, 2016, 2017.
- Additionally, according to a news report, "A review of AARP's
financial statements shows that since 2010, AARP has made more than
$4.5 billion in income from…health
insurance plans and generating investment income from plan
premiums."
- Additional news reports note that, "Much of AARP's revenue
comes from its connection to United Healthcare Group (UHG). While
AARP collected $301 million in
membership dues in 2017, the organization took in about
$627 million in royalties from
UHG."
- According to a 2011 Congressional report, "United is AARP's
largest business partner. As part of the United and AARP business
agreement all three of the Medicare insurance product lines are
marketed under the AARP brand name." This same report further found
that "State insurance rate filings show that, in 2010, AARP
retained 4.95% of seniors' premiums for every Medigap policy sold
under its name."
- A news report quoted a former AARP executive as saying that,
"The new arrangement with insurance companies creates a tremendous
number of potential conflicts for AARP."
Learn more at WhoisAARP.org.
About PhRMA
The Pharmaceutical Research and
Manufacturers of America (PhRMA) represents the country's leading
innovative biopharmaceutical research companies, which are devoted
to discovering and developing medicines that enable patients to
live longer, healthier, and more productive lives. Since 2000,
PhRMA member companies have invested more than $600 billion in the search for new treatments and
cures, including an estimated $71.4
billion in 2017 alone.
Connect with PhRMA
For information on how innovative
medicines save lives, please visit:
www.PhRMA.org
www.Innovation.org
www.MAT.org
www.Facebook.com/PhRMA
www.Twitter.com/PhRMA
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SOURCE Pharmaceutical Research and Manufacturers of America
(PhRMA)