The AARP announced this week its support of bipartisan legislation requiring pharmaceutical companies to provide more transparency in drug pricing. Great Care sees that helping seniors and their caregivers manage costs.

The FAIR Drug Pricing Act of 2016, introduced Sept. 15 by U.S. Senators Tammy Baldwin (D-WI) and John McCain (R-AZ), and Representative Jan Schakowsky (D-IL), requires pharmaceutical companies to submit a report to the U.S. Department of Health and Human Services (HHS) when they increase the price of their drugs by more than 10% during the year.

“The report would have to include the costs associated with researching, developing, and manufacturing the qualifying drug,” says the AARP, in explaining its support of the proposed bill. “Drug companies would also have to provide the drug’s net profits, all related promotional marketing and advertising spending amounts, and some additional specific information on total spending by the companies.”

The AARP says these transparent reports won’t include confidential or proprietary information, and would be publicly available in an understandable online format. Accessible information on the costs and value of prescription drugs would help consumers, healthcare providers, insurers, and policymakers determine whether drug manufacturers’ drug price increases are justified.

“It’s abundantly clear that we need to address the unsustainable trend of sky-high prescription drug prices,” says AARP CEO Jo Ann Jenkins. “The FAIR Drug Pricing Act is an important step in demanding more transparency from pharmaceutical companies when they dramatically raise the prices of their products.”

According to surveys, nearly 60% of Americans take at least one prescription drug on a regular basis. The average senior takes four medications on a regular basis.

Great Care Founder and CEO Julie Sullivan says the FAIR Drug Pricing Act would help seniors and their caregivers better navigate prescription drug plans with their healthcare providers.

“Many seniors are on the receiving end of these expensive drugs that are becoming even more pricier, and more prescribed for more ailments and conditions,” Sullivan says. “That is even more difficult for those seniors on fixed incomes or those who are well past retirement who are unable to work.”

A recent AARP report shows that retail prices for a combined set of widely used prescription drugs consistently increased faster than general inflation in every year from 2006 to 2013. The average annual retail cost of widely used specialty prescription drugs was over $53,000 in 2013, more than twice the median income of $23,500 for Medicare beneficiaries.

“Astronomically priced drugs are hurting everyone, but seniors are particularly vulnerable to endless escalations in their prescription drug costs,” Jenkins says. “AARP is actively working on ways to help make prescription drugs affordable for its members and all Americans.”

Total prescription drug spending in the U.S. hit a record high of $425 billion in 2015 and is projected to surpass $600 billion by 2020. “We, as a society, simply cannot afford to continue handing drug manufacturers a blank check,” said Jenkins.

Drug companies that failed to comply with The FAIR Drug Pricing Act’s reporting requirement would face civil penalties of $100,000 per day. These funds would be deposited into a new Drug Value and Price Transparency Fund and used to fund activities initiated by this legislation.

AARP does not endorse candidates for public office or make contributions to political campaigns or candidates. To learn more, visit www.aarp.org or follow @aarp and @JoAnn_Jenkins on Twitter.

The professionals at Great Care are available to talk with you and your family about all of your home care needs, including respite care. Great Care is a non medical in-home care agency providing quality and affordable elder care in Fishers, IN and the surrounding areas. Call (888) 240-9101 for more information.