AARP

AARP investigated for false advertising of member insurance

Anne Zieger — Wed, 19 Nov 2008 10:12:20 -0500

The AARP prides itself on being an adamant watchdog for consumers' rights, especially on healthcare--but sometimes gods have feet of clay. The billion-dollar elderly advocacy group is now accused of false advertising on its own insurance policies.

AARP partnered with UnitedHealth Group, one of the nation's largest insurers, to give members limited-benefit policies. The investigation is trying to discover whether they marketed them as true insurance policies, which would have been deceptive since the maximum payment for many procedures falls far below what hospitals charge.

Senator Charles E. Grassley (R-IA) has called for the AARP to disclose the profits it has made from selling the insurance policies. Meanwhile, the AARP has responded by launching its own investigation into its marketing to see whether it was deceptive in any way. Perhaps it can discover as much in investigating itself as it does investigating others.

To learn more about the limited-benefit policies:
- read this New York Times piece

Specialty biotech drugs prices rising

Anne Zieger — Fri, 26 Sep 2008 15:33:21 -0400

Biotech drugs, treating conditions like cancer and rheumatoid arthritis, are already mind-bogglingly expensive, with some hitting $100,000 per year. As if that wasn't enough, now research suggests that these drugs' prices are rising faster than both inflation and the prices of other prescription drugs.

According to a new report from the AARP, the wholesale price of specialty drugs rose 8.7 percent last year--three times he rate of inflation. Meanwhile, the price of non-specialty, branded drugs rose 7.4 percent; the price of generics fell by 9.6 percent. These numbers come from the AARP's study of more than 140 specialty drugs frequently used by Medicare beneficiaries.

Not only did the overall level of specialty drug prices rise this year, some specialty drug prices skyrocketed over the last several years. AARP found that for 112 commonly used specialty drugs on the market from December 2003 to December 2007, the average price rose by 42.9 percent.

To learn more about this study:
- read this Wall Street Journal blog item

Related Articles:
AARP fights for generic biologic drugs
Biotechs eager for FDA approval of biogeneric drugs
Biotech drug prices hitting ceiling?

Coalition protests healthcare cuts in CA

Fri, 27 Jun 2008 06:59:57 -0400

It's somewhat ironic that a Governor as well known for his commitment to physical fitness as he is for being an aging action adventure hero has proposed deep budget cuts that could leave more than one million Californians without access to healthcare. But if adopted, Arnold Schwarzenegger's budget proposals would cut Medicaid spending by more than $1.1 billion in the fiscal year that begins next Tuesday.

A coalition of providers, carriers, labor unions and consumer advocates have joined forces to protest the cuts. The coalition includes Catholic Healthcare West; the Service Employees International Union; AARP and Health Access California; Kaiser Permanente and Health Net. In January, the same group failed to convince legislators to support a bill that would have funded a $15 billion health care expansion. The proposed cuts are expected to be approved because California has a $17 billion deficit.

Providers are rallying where they can to come up with strategies for ensuring access. For example, Health Net of California said that it will provide up to $5 million in emergency loans to keep safety-net health clinics vulnerable to budget cuts open.

For more info:
- see The Los Angeles Times story

Biotechs eager for FDA approval of biogeneric drugs

Tue, 19 Feb 2008 06:59:56 -0500

For years, the biotechnology industry has fought hard against legislative changes that would allow the FDA to approve generic versions of biotech medications. On the opposite side of the ring are a variety of interest groups, including the AARP. These groups hope to see cheaper alternatives become available to costly brand-name biologics, which treat diseases like rheumatoid arthritis, multiple sclerosis and cancer but can cost upwards of $100,000 per year in some cases. Now, however, the industry has made a complete turnaround, and is eager to get such legislation passed in 2008.

Biotech industry advocates say they want a measure passed this year because they're concerned that this year's elections won't be kind to their interests. This way, at least, they can have more say in how such legislation is written, advocates say. However, some observers say that while the biotechs will win more friends with their new attitude, they're not likely to see legislation enacted until 2009. I have no doubt that they'll still throw all they've got at getting a bill through this year, though.

To get more background on this issue:
- read this Associated Press piece

Related Articles:
AARP fights for generic biologic drugs. Report
Health plans cut back on biologics payments. Report
Generic drug makers line up for biogenerics. Report
Governors push for cheaper insulin. Report
Biotech drug prices hitting ceiling? Report

NY considers physician-ranking legislation

Tue, 27 Nov 2007 06:59:57 -0500

Over the last few months, several New York health plans have agreed to follow the Attorney General's proposed guidelines for physician ranking programs. While Attorney General Andrew Cuomo may be pressuring the plans to conform to his standards, their participation has still been essentially voluntary. Soon, however, they may have no choice. A new bill has been filed in the New York state legislature which would establish the guidelines as state law. The measure's physician-ranking guidelines, which are adapted from Cuomo's model, were created with help from the AMA, AARP and Consumers Union.

The bill is believed to be the first in the nation to set rules for physician rating programs. While it's too soon to tell whether it can pass, it's worth of note that the bill has won the support of the state's Senate Majority Leader.

To find out more about the bill:
- read this Modern Healthcare piece

Related Articles:
UnitedHealth next to agree to NY rankings model. Report
Another health plan agrees to NY doctor rating reforms. Report
Aetna strikes doctor-ratings deal with NY. Report
CIGNA makes MD rating deal with NY. Report
NY AG concerned about MD ranking system. Report
The fuss over physician ratings. Report
Restaurant ratings firm Zagat, WellPoint rate doctors. Report
TX doctors slam quality ratings system. Report

Fight continues over state limits on prescription data mining

Wed, 21 Nov 2007 06:59:55 -0500

Hearings began this week on an effort, sponsored by at least six pharma data-mining firms, designed to overturn a new Maine law which lets prescribers opt out of having their prescribing information used by such companies. Players fighting to overturn the Maine measure include IMS Health, Verispan, McKesson Corp. and Source Healthcare Analytics. Groups backing the law, which data-mining firms say is unconstitutional, include the AARP and consumer group Community Catalyst. If the effort to overturn the legislation fails, it will become effective as of January 1, 2008.

Whether the Maine law actually is ruled unconstitutional remains to be seen, of course. However, a related--though stricter--New Hampshire law completely banning the collection of physician prescription data for commercial use was struck down earlier this year as an abridgment of the vendors' free-speech rights. New Hampshire officials are appealing the decision. Meanwhile, a similar Vermont law remains on the books, though it too is facing a challenge.

Even if the companies win in Maine, this is far from over. I predict that the data-miners will be playing legal Whack-A-Mole for quite some time, as many state legislators seem convinced that using such data for drug marketing can push doctors to prescribe costly brand-name drugs unnecessarily.

To learn more about the legislation, and political ferment around it:
- read this Modern Healthcare article

Related Articles:
Data providers challenge prescription-privacy laws. Report
NH bans prescription data collection by pharmas. Report
Pharmas protest NH drug info law. Report
Law would make pharmas reveal MD payments. Report

NY bill would require pharmas to report MD gifts

Thu, 07 Jun 2007 20:01:38 -0400

Momentum seems to be building for a New York state bill which would require drug makers to report when they give doctors gifts valued at over $75. This week, a wide range of physician and consumer groups expressed support for the measure, including the AARP, National Physicians Alliance, Center for Medical Consumers and Consumer Reports publisher Consumers Union. The bill targets the $7 billion per year pharmas spend in physician gifts, which includes everything from meals, trips and entertainment to the ubiquitous pens and Post-It pads. This is a second go-round for the bill, which passed the state Assembly last year but faltered in the state Senate. The pharmaceutical industry hopes to short-circuit the bill, of course, as such incentives are among its most commonly-used marketing tools. However, even if the pharmas manage to kill this bill, they're probably going to have to play Whack-A-Mole with similar bills in other state legislatures, as the notion of limiting drug maker gifts is gaining popular support.

To get more background on the bill:
- read this United Press International article
- read the AARP press release

Related Articles:
NH ban on prescription data use overturned. Report
Most MDs still accept pharma, device-maker gifts. Report
Doctors weigh in on pros and cons of accepting drug/device freebies. Letters
States tighten screws on pharma marketers. Report

Health plans cut back on biologics payments

Tue, 08 May 2007 20:01:35 -0400

Managed care executives are understandably stressed by the cost of biologic drug treatments which, in extreme cases, can run as much as $100,000 per year. To address the problem, many plans are asking patients to pay larger percentages of the medications' cost. With some patients already spending hundreds of dollars a month, some are cutting back, and others can't afford to raise doses when necessary, physicians say. Other doctors have complained that health plans are using less-direct tactics to limit biologic drug costs, such as making them bend over backwards to justify individual treatments. The net result may be that doctors prescribe old-line drugs which aren't as effective, some suggest.

This problem may let up somewhat if a pending federal bill passes making it easier for the FDA to approve generic biologic drugs. In the mean time, some drug makers are responding by expanding patient-assistance programs. For example, drug maker Centocor (a Johnson & Johnson subsidiary) has launched a program designed to help new Remicade patients carry co-payments.

To find out more about this trend:
- read this San Francisco Chronicle article

PLUS: The U.S. Senate voted to allow drug imports from a lineup of other countries--but only after scuttling the whole initiative by first requiring health officials to sign off on the safety of any drugs that are imported. Report

Related Articles:
AARP fights for generic biologic drugs. Report
Generic drug makers line up for biogenerics. Report
Governors push for cheaper insulin. Report
Biotech drug prices hitting ceiling? Report

AARP fights for generic biologic drugs

Mon, 26 Mar 2007 20:01:35 -0400

The AARP has stepped into the fight over biologic drugs, throwing its support behind a new bill designed to speed the development and approval of generic versions of these medications. The measure, The Access to Life-Saving Medicine Act of 2007, would provide the FDA with a regulatory approach for approving generic biologics. The bill is intended to offer cheaper alternatives to biologic drugs, which treat diseases like rheumatoid arthritis, multiple sclerosis and cancer. Brand-name biologics are hugely expensive, with prices for some exceeding $100,000 per year. Given these costs, some insurers are demanding that patients try cheaper drugs before taking existing biologics. Generic biologics, however, could address this problem to some degree, supporters say, offering a cheaper alternative for treating chronic diseases. Encouraged by the potential for cost savings, big employers are backing the measure as well.

To get more background on the struggle:
- read this United Press International article

PLUS: The AARP is launching a newspaper and radio campaign in 10 states, as well as Washington, DC, backing a new bill which would allow the federal government to negotiate Medicare drug prices with drugmakers. Article

Related Articles:
Generic drug makers line up for biogenerics. Report
Governors push for cheaper insulin. Report
Biotech drug prices hitting ceiling? Report

SPOTLIGHT: AARP targets healthcare reform

Wed, 21 Feb 2007 19:01:32 -0500

When the mighty lobbying engines of the AARP spin up, something concrete usually happens. So it's definitely of note that healthcare reform is at the top of the powerful group's 2007 political agenda. Among other things, the 35 million member association is pushing for bills that lower prescription drug prices and extend coverage to the uninsured. Specifics of their agenda include backing a bill which would allow legal importation of drugs from Canada and other countries, as well as reforms that would make generics available faster. Article