Over the next 10 years, some 64 million people on Medicare, and American taxpayers, will save $100 billion, thanks to provisions in President Joe Biden's Inflation Reduction Act, which once again allows Medicare to negotiate prices with drug companies.
Todd Stubbendieck, state director for AARP Nebraska, said it is something the Department of Veterans Affairs has been doing for years, saving taxpayers billions of dollars.
"For years Big Pharma has had a blank check," Stubbendieck asserted. "Whatever they said the cost was, was what Medicare had to pay. Medicare is a big customer when it comes to buying prescription drugs. This finally allows them to bring down those prices."
Just as Costco or Sam's Club leverages their buying power to lower prices for customers, Stubbendieck explained Medicare will be able to do the same thing. Industry groups have criticized the move, claiming its current pricing structure provides research-and-development funds, which have produced groundbreaking new medicines.
AARP and other groups had been working to reverse a law passed by Congress two decades ago which blocked Medicare from negotiating prices, but were unable to overcome powerful lobbying efforts. Big Pharma spends $233 million a year to get lawmakers to vote their way.
Stubbendieck is not convinced drug-company pricing has been linked to research and development costs.
"I think that argument would hold a lot more water if American consumers were paying the same prices for drugs that folks around the world were paying," Stubbendieck contended. "American seniors are paying two to three times the cost for these drugs as people in other countries."
Medicare provisions in the Inflation Reduction Act are projected to reduce the federal deficit by $237 billion. The cost of insulin will be capped at $35 per month, and drug companies will have to pay rebates if prices rise faster than inflation. Out-of-pocket costs for older Americans will also be capped at $2,000 per year.
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In her fifth State of the State address this week, Gov. Gretchen Whitmer emphasized policies designed to put more money in Michiganders' pockets.
The second-term Democrat included several proposals, including a plan to cut the tax on retirement income, that played well with Michigan seniors.
Melissa Seifert, associate state director for government affairs at AARP Michigan, said the governor's speech set a positive tone for the new legislative session. She said her group's priorities include more funding for long-term care and help for the state's caregivers.
"Right now, 68% of Michigan's Medicaid dollars actually go to nursing homes," she said. "We want to see a rebalancing of those dollars, to put back into resources for home and community-based services."
Seifert said AARP is also watching legislation to lower drug prices, expand access to affordable housing and make it easier for people to save for retirement.
Republican lawmakers, in the minority for the first time in years, have said they'll wait for the governor's proposed budget before passing judgment on her programs.
Seifert said lawmakers need to find a solution to the crisis in Michigan's direct-care industry, where she said poor wages and working conditions have led an annual employee turnover rate of up to 80%.
"We want to see Medicaid wages increase for direct-care workers by $4," she said. "And we're also asking for an investment from the American Rescue Plan Act to provide retention bonuses for direct-care workers."
Seifert said she believes home is the best place for seniors to get care, but said that it often leads to long hours and high stress for family members doing the caregiving. She said it's important for the state to develop and provide resources for these families.
"It's estimated that 1.73 million Michiganders are family caregivers," she said. "So, we're looking at a very large chunk of Michigan's population. We want to create Caregiving Resource Centers to provide information and resources for those that need it."
The Michigan Legislature opened on Jan. 12 and will meet periodically through Dec. 28.
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A grant program that helps with projects that benefit local communities is back. The AARP Community Challenge program selects projects for small, one-time grants. The aim is to fund projects that will make cities and towns better for people of all ages - with an emphasis on folks age 50 and older - and can be completed in a few months' time.
Marie Bonaminio, a volunteer with AARP Idaho who looks through applications, said the project's feasibility is one area they focus on.
"Sometimes just the smaller dollars is all they're looking for to finish a project, sometimes just start the project. Maybe we're just a piece of it," Bonaminio said. "But it's all about making the communities more livable."
Bonaminio said applications from nonprofit organizations and government entities are prioritized. The deadline for applications is 3 p.m. Mountain time on March 15th. Once they're funded, the projects must be completed by November 30th. Since it began in 2017, AARP has awarded $12.7-million to more than a thousand projects, including 20 in Idaho.
The Community Challenge program is adding two new grant programs this year. One is a capacity-building micro-grant for improving walkability by starting or expanding a community garden. The other is a demonstration grant, which will focus on transportation improvements and the benefits of accessory dwelling units as a housing solution. While some of the projects funded as part of the Community Challenge's flagship program may only last a short time, others are there for much longer.
Bonaminio said these are big wins for communities.
"These are actually projects that they put together and they stay there," she said. "This is to improve their community forever."
Last year, three projects in Idaho were funded. They included funds to install a permanent sound system at the Anne Frank Human Rights Memorial in Boise, a remote locker system for the Emmett Public Library, and an electric cargo bike that carried games and other items around Boise over the summer.
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AARP Maine said it is hopeful lawmakers will find common ground on issues to support older Mainers this legislative session, including establishing a paid family and medical leave policy.
Surveys show more than 75% of Mainers support a plan to help those providing unpaid care to older parents or spouses while often working full-time jobs or raising children themselves.
Noël Bonam, state director of AARP Maine, said a paid family and medical leave program is needed so caregivers do not have to choose between caring for a loved one and their job.
"We know that there are over 180,000 unpaid caregivers in the state who are making all sorts of changes to their lives to support and take care of a loved one," Bonam reported.
An AARP study found unpaid caregivers in Maine provide more than $2 billion worth of care each year. Bonam argued a paid family and medical leave policy would help offer some balance and support to people working to keep their families healthy and together.
Broadband is another important issue for older Mainers, yet less than 50% of households in the state have access to reliable high-speed internet.
Bonam emphasized the pandemic revealed the importance of reliable internet service for older Mainers to access telehealth services and avoid the health risks stemming from isolation and loneliness.
"It's important for people living in remote places in the state to be able to live life in a way that feels fulfilling," Bonam contended. "In a way that feels connected to what is really going on in the rest of the state."
Bonam noted AARP is encouraging its members to regularly contact their lawmakers to share their struggles as well as hopes for impactful legislation for older Mainers this session. He added Mainers are fortunate to live in a state where residents can easily pick up the phone and give them a call.
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