An overwhelming majority of Americans (84 percent) say that generic drugs are an important part of controlling rapidly increasing drug costs, according to a new AARP study released today in association with three coalitions representing governors, business, labor and consumers. With spiraling Rx drug costs placing heavy burdens on family, business and state budgets, Americans want Congress to close the legal loopholes that prevent the quicker availability of generic drugs as lower cost options to brand name pharmaceuticals.

AARP and two coalitions–Rx Health Value and the Coalition of Competitive Pharmaceutical Market (CCPM)–released a new survey today in which two-thirds of Americans age 45+ said they favor legislation to close the loopholes used by some drug companies to keep generics off the market. (The poll was conducted by ICR of Media, Pennsylvania. It surveyed 1,046 adults age 45 and above with a margin of error of three percentage points for overall results).

"Annual double-digit prescription drug price increases are unsustainable to anyone paying for health care," said AARP CEO Bill Novelli. "Consumers as well as public and private payers have turned to generics as a safe, effective and low-cost alternative to more expensive brand name drugs," he said.

Despite efforts by pharmaceutical companies to slow generics from coming to the market, consumers are readily accepting generic drugs as substitutes for brand names. The survey found that two-thirds usually choose generics over brand names when available, and 90 percent are willing to accept generic drugs as a way to reduce their drug costs.

Novelli said, "We are urging our members and all Americans to ask their doctors about lower-cost generic drugs and other alternatives. The wise use of medication can help consumers save money and improve their health."

However, for a significant number of consumers, without lower-cost alternatives there is no choice. Nearly a quarter (24 percent) of the survey respondents said they have not been able to afford a prescription medication when there was no generic available.

According to Novelli, it is not just older Americans who are struggling. "The high cost of drugs are hurting businesses and are draining state budgets," he said. "With 40 states currently grappling with Medicaid shortfalls driven by unsustainable drug costs, lowering the cost of prescription drugs has become an imperative."

"The idea that employers can provide a lifetime of retiree health benefits is becoming a thing of the past," said Novelli. "We are hearing from many younger AARP members who worry about the steady erosion of employer-sponsored benefits."

Businesses are also concerned, and recognize that without some help in containing health care costs, companies can no longer offer comprehensive drug plans. "This new survey underscores the importance of immediate Congressional action to restrain an unsustainable level of prescription drug expenditures," said Sharon Levine, associate executive director of the Permanente Medical Group, a member of Rx Health Value and part of the Kaiser Permanente Medical Care Program.

Rx Health Value is a coalition of consumers, businesses, health insurers, and health plans representing tens of millions of Americans and billions in prescription drug expenditures.

"Delaying action for yet another year will only place billions of dollars of excess and unnecessary cost burdens on public and private purchasers. Rx Health Value believes that the House must act to pass companion legislation to the Greater Access to Affordable Pharmaceuticals Act, which the Senate overwhelmingly passed earlier this year," Levine noted.

Another coalition of large employers and insurers is also calling for immediate Congressional action. The Coalition for a Competitive Pharmaceutical Market (CCPM) is urging the House to follow the Senate's lead and pass bipartisan legislation this year to reduce the barriers that currently impede the entry of generic drugs into the marketplace. CCPM sees the elimination of anti-competitive market barriers as having the potential to save consumers and employers billions of dollars through the greater availability of affordable, safe and effective generic drugs.

The Food Marketing Institute, a member of CCPM which represents 2,300 supermarkets and food wholesaler members said, "Passage of legislation is important to its industry both as employers who provide health care coverage to our associates and for those supermarket members which serve millions of consumers in their in-store pharmacies."

Brand name drug companies argue that increasing the availability of generic drugs will lead to lower spending on research and development. But according to the new survey, consumers do not agree. When asked if they think high quality generic drugs will result in lower drug costs for consumers or if it will lead to cut backs in research and development, only 16 percent of those polled agreed with the statement that research and development would be reduced.

Consumers also believe that drug companies are too powerful. Over 70 percent said that pharmaceutical companies exert too much power over Congress.

Novelli concluded, "Congress still has an opportunity this year to make drugs more affordable and end unfair industry practices. We need drug coverage in Medicare to help people afford the drugs they need. The wider use of generics is an important way to reduce costs and to make a Medicare drug benefit more affordable over time."

AARP is a nonprofit, nonpartisan membership organization for people 50 and over. It provides information and resources; advocates on legislative, consumer, and legal issues; assists members to serve their communities; and offers a wide range of unique benefits, special products, and services for its members. These benefits include AARP Webplace at http://www.aarp.org/, Modern Maturity and My Generation magazines, the monthly AARP Bulletin, and Segunda Juventud, a quarterly, bilingual newspaper. Active in every state, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP celebrates the attitude that age is just a number and life is what you make it.

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