Fleecing Golden Agers

My mom recently transitioned to an assisted living facility, with me now handling her financial affairs – and mail.  Over the past three weeks she received 32 pounds of mail.  Oh, take out the utility bills and magazines and the remainder (easily 28 pounds) consisted of groups asking her for money. 

The solicitations came from a variety of organizations doing most everything, including one needing funds to “install” America’s “rightful President.” 

Not all the solicitors are charities:  The National Association of Police Organizations, Inc., to cite one, wants mom’s money to “Show your support for our nation’s finest!”  Yet, in the finer print in medium blue letters on a blue background, like this admits that donations are not tax deductible “Because we lobby, full-time in Washington for the safety of citizens and officers.”  Which means the supported groups – including the St. Louis Police Leadership Organization, Inc. – don’t actually get money to support fallen officers the way Backstoppers does.

Now, if one retired woman in St. Charles gets 3 pounds of requests a week that must be because casting a wide net catches a lot of money.  Basically, a major industry designed to fleece older people.

Alas, the NAPO, America’s Cancer Charity and such are pikers compared to the most efficient fleecers of senior Americans:  the American pharmaceutical industry.

You see, my mail this week included a summary of my Medicare drug benefits from my supplemental insurance carrier.  Early last year my cardiologist put me on Eliquis after I developed atrial fibrillation post-COVID.  I refilled Eliquis in January for 90 days, consuming $1,612.49 of my annual $4,430.00 benefit.  So, by the end of the year Eliquis will cost me in excess of $6,400.00.

Oh, I chose a supplemental plan with a strong drug benefit, so I won’t spend $2,000.00 beyond my allocation on Eliquis. Still, add in my other medications and I will spend around $3,000.00 out of pocket.

For me that’s not a deal breaker:  for many seniors the ridiculous cost of drugs is why many don’t take what they should or get their pills as often as they ought.

This doesn’t have to be, for two reasons.

First, since the Medicare drug benefit began in 2006 Congress has refused to let the government negotiate on price for Medicare Part D.  Veteran Affairs wheels on deals on their drug purchases but Medicare can’t.  The American pharmaceutical industry spends in excess of $233 million a year lobbying Congress [https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7054854/] plus even more money advertising to “explain” to mere consumers how high drug prices are best for everyone. 

As President Joe Biden said in this week’s State of The Union speech, this needs to be changed.

Second, drug companies should be forced to follow the rules and the law.  For example, Eliquis ought to have become a generic drug over two years ago.  Instead, well, the manufacturers went to court, made a rabbit look like a squirrel and got their exclusive hold on the product extended to 2031. 

Why?

Last year, Eliquis…brought in more than $2.6 billion for the company [Bristol Myers Squibb] and about $4 billion for Pfizer. 

With Court Win, BMS and Pfizer Stave Off Generic Challengers to Eliquis – For Now | BioSpace

Yes, $6.6 billion in yearly revenue is worth a court fight to avoid the law allowing cheaper, generic manufacturing of drugs.

But that money comes mostly from the pockets of older, retired Americans, many of whom can’t afford the price and, therefore, don’t get Eliquis or similar high-priced, name brand-only drugs.

It gets worse.  Looking at Eliquis and similar heart medications, a St. Louis University doctor sniffed out collusion by the drug manufacturers…

The study found high correlations between average wholesale prices among drugs within five classes used for chronic conditions for which there were multiple contemporaneously brand-name drugs from 2015 to 2020.

Why No Price Competition in Brand-Name Heart Drugs? | MedPage Today Anthony Pearson, ND St. Louis University

Yes, heart drugs – including Eliquis – were the focus of the study.

Getting old takes a lot of effort.  Remember, it also puts a target on your back.  Charities and pseudo-charities want your money. And, the pharmaceutical industry will just plain take all they can get.

Glenn


Photo by Matthias Zomer from Pexels