AARP (formerly known as the American Association of Retired Persons) came out with their quarterly report on drug pricing today and the media is all over the story. The findings? Well, if you rely on the web or newspapers for an interpretation, you might be confused.
"Brand-Name Drug Prices Still Rise Faster Than Inflation" according to Forbes.com. Yet the Chicago Tribune reads the data differently: "Elderly's Drug Bill Growth Below Inflation."
Need help making sense of it? AARP offers a press release letting you know what they think: "Skyrocketing drug prices are a major concern for most people," says their New York Director, Lois Aronstein.
We don't quarrel with the findings of the report. But we are concerned about the reflexive response they may inspire. Expect another round of pharmaceutical bashing on The News Hour tonight and in your papers tomorrow.
Assuming for a moment that new drug prices are rising -- unwelcome on its face to seniors -- this should be considered good news for their children and grandchildren. That is because a portion of the profits goes to fund new health research. And that is important because a lot of low-hanging fruit has been picked and pharmaceutical researchers are being challenged to devise newer approaches to illness while meeting ever-higher safety standards.
As we highlighted the last time AARP put out one of their reports, generic drug prices remain very low. Those who put their money at risk and invested in the research that supported these new prescription drugs have only a few years to recoup their money and earn a reward for the risk before the product becomes generic -- and much more affordable for everyone. If they don't make money in the process, there will be little incentive to risk more money on new research. Innovation will stagnate. Consumers will lose out.
Yet many still complain about high prescription drug prices without offering a solution that will sustain the pace of drug development. Those people can always wait for the drug of their choice to go generic. But they will likely find that in many cases it pays to take the "expensive" drug rather than suffer the alternative: pain, more visits to the doctor, more frequent and longer hospital stays, and shorter life. Maybe AARP should compare the cost of new drugs not against the rate of inflation, but rather against the cost of not taking the drug. Most drugs will be a huge bargain. And there are often older and less expensive alternatives to some of the more expensive drugs cited by AARP, such as Ambien. But if you like innovation so much that you need the latest Ambien, you'll have to consider paying more. That's not such a bad thing. Sleep on it.
Jeff Stier is an associate director of the American Council on Science and Health (ACSH.org, HealthFactsAndFears.com). See also ACSH's reports on Counterfeit Drugs and Weighing the Benefits and Risks in Pharmaceutical Use.
--In other age-related news: Thursday, Sept. 21 (6-8pm, with remarks at 6:30) is a book-release party organized by the Alliance for Aging Research in honor of Eve Herold's Stem Cell Wars at the National Press Club in Washington, DC (529 14th St. NW). RSVP (if spaces are still available) to: jhurwitz@agingresearch.org
--In non-aging-related news, a friend and reader of Stier, Matt Vanderhoek, forwards his interesting PowerPoint presentation on exaggerated fears of electric and magnetic fields, downloadable on this page: 
Cell Phone-EMF PowerPoint presentation
