News From our Members

AARP says Brand-Name Drug Prices Up 8% in 2009

by Duff Wilson

A new report on retail prices of brand-name drugs shows the 217 products most used by older Americans increased  by an average of 8.3 percent during 2009, the largest increase in years, even as inflation was negative.

Over the last five years, according to the report to be released on Wednesday by the senior lobby AARP, the retail prices for the most popular brand-name drugs increased 41.5 percent, while the consumer price index rose 13.3 percent. An AARP official called for measures to hold down drug prices.

Drug industry officials challenged the finding, however, saying select brand-name prices did not reflect the reality of more people using low-price generic drugs. Generics now account for about 75 percent of all dispensed prescriptions in the United States, according to IMS Health, a research firm.

The industry pointed to a broader survey of drug prices showing they rose by 3.4 percent during 2009. The survey, conducted by the government for its official Consumer Price Index, includes generic as well as brand-name drug prices, Jonathan Church, an economist at the Bureau of Labor Statistics, said on Tuesday.

John A. Vernon, an assistant professor of health policy at the University of North Carolina, Chapel Hill, praised the AARP for changing its methods to count retail prices instead of wholesale prices. But Professor Vernon, who had consulted for drug companies and challenged the AARP wholesale price report at a Congressional hearing last year, said its new report was still flawed.

“It can easily be shown that branded prices are higher here than they are in other countries, but we have the lowest and the most competitively priced generic drugs in the world, and the generic share is going up rapidly,” he said. “Just focusing on brands I think is unfair.”

John C. Rother, executive vice president for policy and strategy for the AARP, agreed that generic drug prices had held stable or declined. But he said the group’s new retail price analysis showed why many older Americans were struggling to pay the cost of brand-name drugs they needed for chronic medical conditions.

AARP has changed the method of its annual drug report to look at retail prices, responding to industry complaints last year that measures of wholesale prices, showing brand-name increases far in excess of inflation, were misleading because they did not consider manufacturer discounts. The new report, however, finds the same result on price.

“Brand-name retail prices have been accelerating year-to-year even when inflation has been nonexistent in the rest of the economy,” Mr. Rother said in an interview by phone Tuesday.

The incontinence drug Flomax led the way with a 24.8 percent rise in retail price last year, to $4.09 a pill. Flomax sells for $4.42 a pill on drugstore.com, while its generic equivalent, tamsulosin, sells for $3.63 a pill.

Ann Wainwright, a spokeswoman for Boehringer Ingelheim, did not answer questions about Flomax prices in an e-mail, but said the company was committed to access to medicines, including free medication for eligible low-income patients.

The Flomax patent expired this year, opening the gates for generic competition.

During 2009, among the most popular brand-name drugs, retail prices rose 6 percent, to $5.40 a day, on Nexium from AstraZeneca; 8.8 percent, to $5.06 a day, on Plavix from Bristol-Myers Squibb; 7 percent, to $5.50 a day, on Prevacid from Takeda; 6.8 percent, to $4.21 a day, on Protonix from Wyeth; and 4.1 percent, to $4.03, on Lipitor 20-milligram tablets from Pfizer, the report says.

The AARP reported overall increases of 8.3 percent in 2009, 7.9 percent in 2008, 7 percent in 2007, 6.1 percent in 2006, when Medicare drug benefits started, and 6 percent in 2005. The Bureau of Labor Statistics, including generic prices, reported drug price increases for the same years of 3.4, 2.5, 1.4, 4.3 and 3.5 percent. Both used weighted averages to account for product usage.

The AARP report says many older Americans rely on brand-name drugs for chronic illnesses. It says higher prices push them more quickly into a coverage gap known as the “doughnut hole,” where they have to pay the full cost of drugs.

That gap is being phased out over the next 10 years under the new health care law, including drug industry discounts on brand-name drug prices in the coverage gap.

The Pharmaceutical Research and Manufacturers of America, the industry trade group in Washington, released a statement on Tuesday saying “prescription medicines represent a small and decreasing share of growth in overall health care costs in the United States.”

“Not only is the recent rate of growth for prescription medicines historically low, but the recent decline in drug spending growth has contributed to one of the lowest rates of total health care growth in the past 50 years,” the group said.

The statement cited reports that Medicare drug spending had been far less than initially projected, partly due to generics.

One Bridge Fixed…But our infrastructure needs new funding sources

By DENISE RICHARDSON
Managing Director of the General Contractors of New York

Whaddya know? You can get there from here.

Today, the new Willis Avenue Bridge is due to be eased into place, completing its carefully planned journey by barge to its permanent home. It will replace a structure built in 1901 and now one of the lowest-rated bridges in New York City.

The replacement arrived literally in the nick of time. More than 70,000 vehicles a day use the bridge, which has been past the point of no return for years.

Yet this is just one success story among a limitless need to replace and upgrade our transportation network. These days, it’s all too common for infrastructure projects to be put on hold, delayed or cancelled.

We’re going from bad to worse — and fast. Earlier this year, the transportation think-tank TRIP released a report highlighting the crisis state of New York’s infrastructure. Some 82 percent of major roads in the city are in poor condition, and 35 percent of bridges are structurally deficient. Traffic congestion costs the average driver 44 hours a year.

A lack of funding is delaying such critical projects as the renovation of Kosciuszko Bridge and the expansion of the Major Deegan Expressway, while officials are reducing the scope of other projects so that they only meet immediate needs and provide no room for growth. The state Department of Transportation and MTA five-year capital programs face a $20 billion funding gap over the next five years.

Too many elected leaders opt to postpone the decisions to launch genuine infrastructure improvements because they don’t want any vote in favor of a tax hike coming anywhere near their names — and are also unwilling to fully disclose to their constituents how the “dedicated” taxes they already pay are diverted to other uses

Our dedicated highway and bridge trust fund is broke – with 37.7 percent of its revenues over the last 16 years having gone to cover state operating expenses rather than to pay for the repairs and other basic work it was set up to fund.

On top of that, the state collects $1.15 billion a year in gasoline-sales taxes, supposedly to fund transportation needs — yet the money instead goes to the general fund, never to be seen when it comes time to fund a road, bridge or transit project.

The problem is not exclusive to New York. Federal transportation policy is stuck in its own holding pattern because no politician wants to venture near the hot-button issue of raising the gasoline tax, the proven generator of user fees that have paid for our transportation infrastructure since 1956.

The continued deterioration of our ability to move people and goods has chilling implications for America’s economy.

A partial solution is found at the pump. Without question, taxes have become the bane of our society — yet few can offer an alternative to gasoline taxes as a funding source to repair the roads that move our economy.

Yes, the public has every right to be cynical that gas taxes will yield a smoother, safer ride — since officials already siphon off dedicated highway-trust money for other government spending.

To win public acceptance of these taxes, infrastructure advocates need to do far better at proving the direct connection between the taxes charged at the pump and the condition of our roads and bridges. And the revenue must go to irrevocable trusts that will reliably direct the taxes to the specific purpose they were raised for.

Organizations like the US Chamber of Commerce, the American Trucking Association and AAA are now united in support of a gas-tax increase to fund transportation improvements – because they all recognize that safe roads and bridges keep the economy and the drivers moving.

Overall, Americans are paying the lowest gasoline taxes since the early days of the automobile. Federal fuel taxes have lost 33 percent of their purchasing power since the last increase in 1993 — yet there’s plainly no support for a new hike. Meanwhile, states continue to pilfer from gas-tax trust funds and underfund capital programs.

Elected officials face a simple choice: Either preside over a crumbling and often dangerous transportation infrastructure — or build political support for a funding structure that can do the job, and so strengthen our city, our economy and our future.

The arrival of the new Willis Avenue Bridge is a dramatic demonstration of a success that’s been years in the making. We can get there from here. But we need to be willing to pay for it.

Denise Richardson is the man aging director of the General Contractors Association of NY.

NYSUT praises U.S. Senate on jobs bills; calls on Albany to act swiftly

ALBANY, N.Y. August 4, 2010 – New York State United Teachers today praised the U.S. Senate’s majority and the leadership of U.S. Sens. Charles Schumer and Kirsten Gillibrand for a cloture vote that clears the way for imminent final passage of federal legislation that, by the time school starts in September, will likely mean a $1 billion swing in the fortunes of New York’s public schools.

“Sen. Schumer and Sen. Gillibrand led the way from Day 1, and we could not be more thankful,” said NYSUT President Richard C. Iannuzzi. “Their effective leadership and strong advocacy for FMAP funding and the Education Jobs Bill will help save thousands of teacher and support staff jobs in New York’s schools, strengthening the state’s economic recovery and bolstering everyone’s efforts to continue to make sure that all students get the best education possible,” Iannuzzi added.

Iannuzzi said today’s U.S. Senate vote on cloture and planned Senate passage of final legislation on Thursday would mean an additional $1.6 billion in federal funding for New York. The legislation includes $1 billion in federal Medicaid assistance (FMAP) and $620 million to save 7,100 teaching jobs in New York, once the House of Representatives acts and the final votes are tallied. If the FMAP funding had not cleared today’s procedural hurdle, state lawmakers had planned on an additional $400 million in midyear school aid cuts, on top of the $1.4 billion slashed in Gov. David Paterson’s budget, he said.

Hours after the state Senate acted on what could have meant a disastrous $1.8 billion education cut, congressional action in support of Medicaid assistance to states and for saving teaching jobs reduced the education funding cut to $800 million. “While this deep cut will still have a devastating impact on programs, the U.S. Senate vote is the best possible news for more than 7,000 dedicated education professionals whose livelihoods are on the line,” Iannuzzi said.

NYSUT Executive Vice President Andrew Pallotta noted the Legislature – including the Senate, which finished the state budget late last night – must return to Albany to vote to expend the new federal funding. NYSUT will urge lawmakers to act swiftly, and to also fund the state’s 130 teacher centers and override the governor’s vetoes to provide additional resources to schools and community colleges.

“Assembly Speaker Sheldon Speaker stood out this session by again demonstrating his formidable leadership in support of public education and the State University, and his fervent opposition to gimmicks like tax caps, which will do nothing to relieve the burden on local property taxpayers,” Pallotta said. “Now, as we enter an election season, we will be calling on others in the Legislature to stand up and uphold their longstanding support for what they know is right.”

NYSUT, the state’s largest union, represents more than 600,000 teachers, school-related professionals, academic and professional faculty in higher education, professionals in education and health care and retirees. NYSUT is affiliated with the American Federation of Teachers, National Education Association and the AFL-CIO.

New York State Nurses Association condemns FMAP contingency plan

Latham, August 4, 2010 – The New York State Nurses Association condemns the legislature’s decision to pass the FMAP contingency plan. This plan, intended to offset a possible loss of Federal Medicaid Assistance Percentage funding, will ultimately lead to unsustainable cuts to Medicaid and vital state-sponsored health programs.

“Medicaid and other state-funded health services should not be used as a stop-gap for the state’s fiscal woes,” said Tina Gerardi, MS, RN, CAE, Nurses Association CEO. “Should Congress fail to extend the FMAP enhancement, we ask the legislature to consider the health of New York’s citizens and pass the sugar-sweetened beverage tax instead.”

The New York State Nurses Association is the voice for nursing in the Empire State. With more than 36,000 members, it is the state’s largest professional association and largest union for registered nurses. It supports nurses and nursing practice through education, research, legislative advocacy, and collective bargaining.

Contact: Erin Silk, 518.782.9400, ext 224

Nyack Nurses Ratify Contract

Agreement maintains comparable health insurance for RNs

NYACK, NY, July 30, 2010 – Registered nurses who are members of the New York State Nurses Association yesterday voted to ratify a new three-year contract with Nyack Hospital. The agreement maintains comparable health insurance for the registered nurses, a key point of contention in negotiations which had been going on since last fall.

As the nurses worked to negotiate a fair contract, they were mindful of strengthening an environment that supported quality care and ensured the best possible patient outcomes. One important goal was to make the hospital’s nurse retention and recruitment efforts more competitive, which was addressed by improvements in benefits including staff development and tuition reimbursement.

“We are pleased to have reached a satisfactory agreement and are moving forward to continue working with hospital management to provide the high quality care our community deserves,” said AnnaMarie Perkins, RN, president of the Nyack Hospital bargaining unit.

The contract, which is retroactive to Jan. 1, 2010 and runs through 2013, includes a 9.1 percent wage increase over the three years for the Nyack Hospital RNs, as well as maintaining a comparable health insurance benefit as the hospital changes health insurance providers.

“We provide health care to people every day, and understand how important good health insurance is,” Perkins said.

The New York State Nurses Association is the voice for nursing in the Empire State. With more than 36,000 members, it is the state’s largest professional association and union for registered nurses. It supports nurses and nursing practice through education, research, legislative advocacy, and collective bargaining.

Carthage Area Hospital Nurses Reach Tentative Agreement

CARTHAGE, July 29, 2010 – New York State Nurses Association members at Carthage Area Hospital reached a tentative agreement for a new contract on July 27, just four days before their current contract would expire.

The contract includes a wage increase for all Carthage RNs. Additionally, the Nurses Association persuaded hospital management to increase differential pay for nightshift RNs by 12.5 percent to remedy a 34 percent nightshift RN vacancy rate. Obstetric RNs also won the right to receive hourly specialty differential pay, compensation that was previously only offered to critical care unit and emergency department RNs.

RNs and hospital management will also develop and launch a mentoring program that offers workshops and in-service training to newly hired nurses.

“The nurses really pushed hard to keep their priorities on the table. During negotiations, both parties affirmed that patient care is our mutual goal,” said Annie Rutsky, labor relations representative, NYSNA. “This is an agreement that will help the hospital provide the high quality care that this community deserves.”

The New York State Nurses Association is the voice for nursing in the Empire State. With more than 36,000 members, it is the state’s largest professional association and union for registered nurses. It supports nurses and nursing practice through education, research, legislative advocacy, and collective bargaining.

Statement of PEF President Kenneth Brynien on Paterson’s threat of layoffs

Albany – It is unconscionable for the governor to continue scapegoating state employees and their families for the fiscal crisis or use them as pawns in his negotiations with the Legislature.

The governor was irresponsible in his remarks at an event today to suggest the possibility of layoffs within the state work force when it is still unclear how many state employees will leave state service through the early retirement incentive (ERI).

The governor also once again suggested he is not bound by the no layoffs agreement he made with the Public Employees Federation (PEF). This time, Paterson claims he can no longer comply with his no-layoffs pledge because of the lack of federal stimulus funding. PEF fully intends to hold the governor to his promise and will take whatever measures are necessary to do so.

We would hope that before the governor determines layoffs are inevitable, he would press his agency heads to allow as many workers as possible to leave through the incentive. The Paterson administration failed miserably in implementing the voluntary severance program offered last year, as hundreds of PEF members who were willing to leave state service were denied the opportunity to participate in the program.

Now, it appears the governor is giving up on the early retirement incentive as well, instead of using his authority to direct agency heads to fully comply with the ERI.
It is disingenuous to limit participation in the ERI while claiming layoffs are necessary. We call on the governor to focus on making the ERI program a success, rather than planning for failure.

In addition, PEF reminds the governor of the millions the state could save by relying less on high-priced consultants, when research proves state employees can often do the same work for less. One step in the direction of realizing recurring savings is passage of the cost-benefit analysis bill. The bill has already passed in the Assembly. It would require a cost-benefit analysis before contracting out state services. PEF is calling on the Senate to stop taxpayer abuse and pass the cost-benefit bill.

PEF is the state’s second-largest state-employee union, representing 58,000 professional, scientific and technical employees.

Statement of PEF President Kenneth Brynien on renewed threat of layoffs

FOR RELEASE: Thursday, July 22, 2010

Albany – It is irresponsible for the Paterson administration to suggest the possibility of layoffs within the state
workforce when it is still unclear how many state employees will be leaving state service through the early
retirement incentive (ERI).

The director of the state Divison of Budget (DOB) is quoted in the press suggesting the early retirement
program may fail to reach a savings goal of $250 million and if that is the case, plans for layoffs may have to
be developed. Before deeming the ERI a failure, the DOB should, instead, be pressuring its agency directors to
fully comply with the program.

As was the case with the voluntary severance program offered earlier this year, many PEF members who were
willing to leave state service were denied the opportunity to participate in the program. We anticipate the same
will hold true for the ERI.

It’s unnecessary and irresponsible to threaten to layoff state employees at a time when so many people are
turning to state services during these difficult financial times. We call on the Paterson administration to focus
on making the ERI program a success, rather than planning for failure.

In addition, PEF reminds the governor of the millions the state could save by relying less on high-priced
consultants when research proves state employees can often do the same work for less. One step in the
direction of realizing recurring savings is passage of the cost-benefit analysis bill. The bill has already passed
in the Assembly. It would require a cost-benefit analysis before contracting out state services. PEF is calling
on the Senate to stop taypayer abuse and pass the cost-benefit bill.

PEF is the state’s second-largest state-employee union, representing 58,000 professional, scientific and
technical employees.

Megna: Layoff planning starts next month

A top Paterson administration official said Wednesday that planning to lay off state workers — needed to realize $250 million in workforce savings counted in the budget — will begin in earnest next month.

“We have, as you know, an early retirement program that we’re working through with state agencies,” Budget Director Bob Megna said in an interview with New York Now to be aired Friday.

“I don’t think we can get to the $250 million just through the early retirement program, but I think we want to see where we are with that program over the next week, 10 days, where we think savings are,” Megna said. “And then after that, I think we need to sit down with the governor … and decide if we need to take further actions, including layoffs.”

Paterson has attempted to lag pay for state workers and furlough employees one day a week in order to achieve his savings. He also asked employees to forgo a scheduled raise earlier this year. All the proposal were rebuffed by unions representing public employees, and the furlough attempt was ruled unconstitutional by a federal judge.

The unions have argued that concessions required by the governor unfairly abrogate their existing collective bargaining agreements, and have proposed finding workforce savings by replacing outside consultants with unionized employees. They also claim Paterson is bound by a pledge to not lay off workers until 2011, an agreement forged when unions acquiesced to the creation of a new, less-generous pension tier for new employees.

Paterson originally said he would wait until the first of the year to lay off workers, but later said he felt it would unfairly “kick the can” to the next governor were he to do so. Paterson is not seeking another term in office. Megna said that planning now was necessary given the “complicated” nature of planning for layoffs.

“It’s not something where you can say, ‘oh, I’m going to lay off people tomorrow,’ and then make it happen,” he said. “It’s a lengthy process, so it is a process that would certainly, in all likelihood, extend into the next governor’s administration, so I think you have to take it very seriously and very careful.”

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