MARIA: WELCOME BACK.
NEW DATA THIS MORNING FROM AARP,
LOOKS TO PROVE ACCUSATIONS BIG
DRUG COMPANIES ARE GUILTY OF
PRICE GOUGING.
AARP'S NEW REPORT FINDS BRAND
NAME DRUGS COST 18 TIMES MORE
THAN GENERICS.
JOINING US RIGHT NOW IN A FIRST
ON FOX INTERVIEW IS AARP HEALTH
SERVICES RESEARCH DIRECTOR, LEE
PERVIS.
ONE OF THE REASONS THAT SOME OF
THE BRAND NAMES ARE HIGHER AT
CERTAIN TIMES IS BECAUSE THERE
ISN'T ANY COMPETITION OUT THERE,
RIGHT?
WHEN THE PATENT GOES AWAY AND
THE GENERICS COME IN, TYPICALLY
PRICES GO DOWN.
TELL US WHAT YOU'VE SEEN.
>> SO WHAT WE SAW IN THE MOST
RECENT REPORT IS SOMETHING THAT
WE'VE SEEN FOR ABOUT THE PAST 15
YEARS, WHICH IS THAT GENERIC
DRUG PRICES DECREASE ON AVERAGE.
WHAT WAS STRIKING TO US WAS THE
DIFFERENCE BETWEEN BRAND NAME
DRUG PRICES AND GENERIC DRUG
PRICES.
MARIA: IT'S THAT MUCH HIGHER,
18% YOU SAID?
>> 18 TIMES HIGHER, WHICH DRIVES
HOME THE IMPORTANCE OF LOWER
COST PRESCRIPTION GENERIC DRUGS
AND THE IMPORTANCE OF DOING
SOMETHING ABOUT REALLY HIGH
PRICED BRAND NAME PRESCRIPTION
DRUGS.
MARIA: DO YOU THINK PEOPLE
UNDERSTAND THAT BRAND NAMES ARE
18 TIMES THE PRICE OF THE
AVERAGE HE GENERIC, BUT THE
GENERIC DRUG IS THE SAME THING?
>> THAT IS SOMETHING THAT WE
REALLY TRY TO DRIVE HOME TO OUR
MEMBERS AND TO ALL AMERICANS, IS
THAT THEY ARE THE EXACT SAME
PRODUCT.
SO YOU WANT TO MAKE SURE THAT A
GENERIC EQUIVALENT ISN'T
AVAILABLE BECAUSE YOU COULD BE
MISSING OUT ON SUBSTANTIAL
SAVINGS.
MARIA: GENERICS ACCOUNT FOR
NINE OUT OF EVERY 10
PRESCRIPTIONS FILLED IN THE U.S.
BUT THEY'RE NOT REPRESENTED IN
TERMS OF SPENDING.
EXPLAIN THAT.
>> ABSOLUTELY.
THAT REALLY COMES BACK TO THE
PRICE DIFFERENTIAL.
THEY ONLY ACCOUNT FOR ABOUT A
QUARTER OF SPENDING.
AND THAT COMES BACK TO THE FACT
THAT THEY ARE PRICED SO MUCH
LOWER THAN THESE BRAND NAME
PRESCRIPTION.
MARIA: ONE OF THE ISSUES --
WE'VE HAD ON A COUPLE CEOS IN
THE SECTOR WHO SAY IT'S REALLY
THE STRUCTURE OF THE INDUSTRY,
THERE ARE SO MANY MIDDLEMEN
AROUND THAT NEED TO GET A TAKE
IN TERMS OF THOSE -- THAT PRICE
OF A BRAND NAME DRUG, AND THAT'S
WHY THE PRICE IS SO HIGH.
ARE YOU BUYING IT?
>> THAT IS DEFINITELY A
NARRATIVE WE'RE HEARING A LOT
LATELY.
THE REALITY IS, PRICES ARE SET
BY DRUG MANUFACTURERS.
THE ROOT OF THE PROBLEM IS THEIR
PRICING BEHAVIOR.
MARIA: WHAT DO YOU WANT TO
HAPPEN?
HOW ARE YOU GOING TO GET THIS TO
RESONATE NOT TO RAISE PRICES AND
HAVE SUCH HIGH PRICES FOR DRUGS
THAT PEOPLE NEED, LIFE-SAVING
DRUGS IN SOME CASES.
>> AARP EMBARKED ON A CAMPAIGN
CALLED STOP RX AGREED,
CALLED STOP RX GGREED,
CALLED STOP RX GREEED,
CALLED STOP RX GREEDD,
CALLED STOP RX GREED,,
CALLED STOP RX GREED, FOCUSED ON
SOLUTIONS TO HELP BRING DOWN
PRICES.
PART OF THAT IS MAKING SURE
THERE'S ADEQUATE GENERIC
COMPETITION.
MARIA: HOW DO YOU DO IT?
IS IT MORE COMPETITION?
MORE GENERICS ON THE MARKET?
>> PRICING BEHAVIOR IS OUT OF
CONTROL.
THERE IS PRICE GOUGING TAKING
PLACE.
SOME OF THE SOLUTIONS NEED TO
ADDRESS PRICING BEHAVIOR.
MARIA: THESE ARE WIDELY USED BY
OLDER AMERICANS FOR THE MOST
PART?
>> THEY ARE.
ALL OF THE DRUGS WE FOCUS ON
WHEN TRACKING PRESCRIPTION DRUG
PRICES ARE ONES THAT ARE THE
MOST WIDELY USED BY AMERICANS
AGE 50,.
MARIA: GIVE US EXAMPLES OF SOME
OF THE DRUGS THAT ARE WIDELY
USED, MAYBE THE AUDIENCE KNOWS
THE DRUGS AND WHAT THE PRICES
ARE L RELATIVE TO GENERIC.
>> SURE.
IF YOU TAKE A LOOK AT FOR
EXAMPLE A LIPITOR, THAT PRODUCT
CAN REACH INTO THE
CAN REACH INTO HHE
CAN REACH INTO HUNDREDS OF
DOLLARS.
THE GENERIC PRODUCT IS WELL
UNDER $100.
THAT DOES COME BACK TO THE
DIFFERENTIAL THAT REALLY CAN
RESULT IN SUBSTANTIAL SAVINGS
FOR PEOPLE.
MARIA: $100 FOR WHAT?
WHAT IS THE DOSAGE YOU'RE
REFERRING TO?
YOU'RE TALKING ABOUT TENS OF
THOUSANDS OF DOLLARS ON A YEARLY
BASIS, RIGHT?
>> ABSOLUTELY.
YOU DO HAVE TO BE MINDFUL, SOME
OF THAT IS AFFECTED BY
OUT-OF-POCKET REQUIREMENTS, SOME
PEOPLE HAVE A COPAY SO THEY
DON'T PAY THE FULL PRICE.
WE WANT PEOPLE TO BE MINDFUL
THAT FULL PRICE OF THE PRODUCT
IS PAID FOR BY YOUR HEALTH
INSURER SO YOU SEE THAT COST
COME OUT IN YOUR PREMIUMS.
MARIA: WHEN YOU LOOK AT
GENERICS OUT THERE, ARE THERE
USUALLY GENERICS RIGHT ALONGSIDE
OF THE BRAND NAME DRUGS THAT
PEOPLE CAN TAKE AS OPPOSED TO
THE BRAND NAMES?
BECAUSE IT DEPENDS ON WHERE THE
PATENTS ARE.
>> IT'S WORTH A CONVERSATION
WITH YOUR HEALTHCARE PROVIDER.
IT'S HARD TO SAY EXACTLY HOW
MANY DRUGS HAVE GENERICS
AVAILABLE.
A MAJORITY OF WIDELY USED DRUGS
PEOPLE USE FOR CARDIOVASCULAR
CONDITIONS DO HAVE GENERIC
EQUIVALENTS.
IT'S WORTH A CONVERSATION WITH
YOUR DOCTOR OR PHARMACIST.
MARIA: THE TRUMP ADMINISTRATION
HAS BEEN TRYING TO CREATE MORE
COMPETITION TO PRESSURE PRICES
LOWER, THOSE BRAND NAMES AS WELL
AS GENERICS.
WHAT ELSE DO YOU THINK
GOVERNMENT CAN DO IN THIS
REGARD?
>> WE HAVE REALLY APPRECIATED
THE ADMINISTRATION'S EFFORTS SO
FAR.
ONE THING THAT AARP HAS LONG
SUPPORTED IS NEGOTIATION OR
ALLOWING MEDICARE TO NEGOTIATE
ON BEHALF OF BENEFICIARIES.
WE THINK THAT'S LONG OVERDUE AND
COULD REDUCE PRICES FOR THOSE
PEOPLE.
GOING BACK TO GENERIC
COMPETITION, WE'RE SUPPORTIVE OF
EFFORTS TO HELP INCREASE THE
SPEED OF GENERIC COMPETITION, SO
THINGS LIKE ELIMINATING PAPER
DELAY AGREEMENTS WHERE BRAND
NAME DRUG COMPANIES AND GENERIC
COMPANIES WORK TOGETHER TO DELAY
THE AVAILABILITY OF GENERICS.
AND ALSO TO HELP PREVENT BRAND
NAME DRUG COMPANIES FROM
BLOCKING GENERIC COMPETITION.
MARIA: DOES IT FEEL TO YOU THAT
THE FDA IS MOVING FASTER ALONG
IN TERMS OF GETTING THESE
GENERICS THROUGH AND BACK OUT TO
THE MARKET?
>> ABSOLUTELY.