Latest news with #AmericanAssociationofRetiredPersons
Time of India
23-07-2025
- Health
- Time of India
200% tariffs in offing? Trump vows to slash drug prices using import restrictions
Older Americans most at risk Live Events Drug prices already higher than the rest of the world Experts warn Tariff plan could backfire Tariffs could push prices even higher Growing health debt adds to the pressure Rebuilding US drug production will take time (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel U.S. President Donald Trump announced on Tuesday his plan to use import restrictions as a tool to lower drug prices. He stated that foreign suppliers would be pressured to reduce their prices. Speaking at a White House event with Republican lawmakers, Trump addressed the issue of prescription drug costs. He pledged to decrease the amount consumers pay for these medications.'Drug companies will have lot of problems if they don't agree to bring prices down,' he said, making clear he plans to use trade policy as leverage. 'We are going to get drug prices down.' He also stated, 'We will use import restrictions to force foreign suppliers to cut drug prices.'Trump's latest proposal involves a 200 percent tariff on imported pharmaceuticals. His stated aim is to boost domestic drug manufacturing and reduce America's dependence on foreign supply first, he said the plan wouldn't take effect for another year. More recently, he hinted it could begin with a smaller tariff as early as 1 August and ramp up than 60 percent of adults in the US fill at least one prescription each year. That figure climbs sharply with age. According to the Centers for Disease Control and Prevention, nine out of ten Americans over 65 rely on prescription drugs to manage chronic health the high cost of medicine is already keeping many from getting the care they need. Research by the American Association of Retired Persons found that nearly half of adults aged 50 and older have either skipped a prescription because of cost or know someone who United States pays more for prescription drugs than any other country, according to the Department of Health and Human Services. One reason for this is the heavy reliance on imports. Many of the most-used medications in the US are manufactured have more than doubled over the past two decades. In 2006, pharmaceutical imports stood at $65 billion. By 2019, they had jumped to $151 billion. These drugs cover a wide range of treatments, including for arthritis, cancer, schizophrenia, blood clots, osteoporosis and Beschloss of RockCreek Group responded to Trump's proposal, saying, 'That would be potentially disastrous for every person because we need those pharmaceuticals, and it takes those companies a long time to produce them here in the U.S.'Analysts at UBS echoed that concern. They said even a 12-month delay in enforcing the 200 percent tariff offers 'insufficient time' for drug manufacturers to shift production to the US. A realistic timeframe, they believe, is closer to four to five Pharmaceutical Research and Manufacturers of America (PhRMA) commissioned research showing that a 25 percent tariff alone would raise US drug costs by nearly $51 billion. A 200 percent tariff would almost certainly cause even greater impact would be felt most in the generics market. Nearly 80 percent of generic tablets and capsules used in the US come from abroad. Brookings researchers warn that the narrow profit margins on generics mean even modest tariffs could push some drugs out of production altogether. For many patients, these are the only affordable debt in the US continues to rise. Americans collectively owe more than $220 billion in health-related expenses. Fourteen million people owe over $1,000 and three million owe more than $10, burden of higher drug prices will fall hardest on those who are already struggling. Older adults, disabled people and low-income families will likely bear the brunt of the production moved overseas gradually over several decades. Experts say bringing it back cannot be supporters of reshoring agree that the process needs to be managed carefully. A sudden shift could cause immediate drug shortages and price spikes, undermining the very goal of making medicines more accessible and broader aim of building a self-reliant drug supply is shared by many. But most agree the policy path to get there must avoid short-term shocks that could leave millions without the medicines they depend aggressive tariff proposal may play well politically, but the risk it carries for public health is difficult to ignore.
The Hill
22-07-2025
- Health
- The Hill
Trump's pharmaceutical tariffs will dig America deeper into medical debt
President Trump recently announced his intent to impose a 200 percent tariff on pharmaceuticals to lure drug manufacturing back to the U.S. This action, if implemented, will come at great cost to millions of Americans already struggling to cover their medical bills and force them deeper into health care debt. A vast number of Americans today rely on prescription medications. Over 60 percent of adults have at least one prescription filled every year. These statistics rise dramatically as we grow older. The U.S. Centers for Disease Control and Prevention found an estimated nine out of 10 people over the age of 65 rely on these drugs to maintain their long-term health. Many adults admit to not taking their medications due to fears over cost. Almost half of adults age 50 and older 'have either skipped filling a prescription due to costs or know someone who has,' according to research by the American Association of Retired Persons. U.S. prescription drug prices are almost three times higher than those of other countries. The U.S. 'pays higher prices for prescription drugs than any other country in the world,' notes the U.S. Department of Health and Human Services. In part, that's because some of the most widely used drugs in America are imported from other countries. Pharmaceutical imports have more than doubled in recent decades, rising from $65 billion in 2006 to $151 billion in 2019. They include many popular drugs that treat diseases such as rheumatoid arthritis, osteoporosis, cancer, blood clots, schizophrenia and obesity, among others. The long-term goal of boosting U.S. drug manufacturing to make America less reliant on pharmaceutical production from other countries, lower drug costs and increase medication access is an important endeavor. But the policies we enact to try and achieve this desired outcome must be weighed carefully to avoid creating short-term price spikes and drug shortages that could hurt millions of people. Trump initially said his tariff proposal wouldn't go into effect for another year. He has since changed this view by indicating the U.S. may 'start off' with a lower tariff as early as Aug. 1, and raise it to a 'very high tariff' in a 'year or so.' But experts have issued warnings about the possible impact these tariffs will have on public health, saying even a year isn't enough time for the U.S. drug industry to build the required infrastructure necessary to meet U.S. supply demands. 'That would be potentially disastrous for every person because we need those pharmaceuticals, and it takes those companies a long time to produce them here in the U.S.,' said Afsaneh Beschloss of RockCreek Group in response to Trump's proposed tariff plan. UBS analysts noted Trump's initial proposal to delay enforcement of a 200 percent tariff by 12 months still provides ' insufficient time ' for drug companies to relocate manufacturing operations to the U.S.. A four-to-five-year horizon is more realistic, they say. What's more, research commissioned by the pharmaceutical industry lobby group PhRMA found that a mere 25 percent tariff would increase U.S. drug prices by almost $51 billion. Trump's tariff proposals will hurt those dependent on generic medications especially hard. That's because nearly 80 percent of generic capsules and tablets Americans consume come from outside the U.S. Analysis by Brookings found that, given the low margins on generic prescriptions, tariff pressure could result in the discontinuation of certain drugs that, for many, are their only affordable option. As of last year, Americans owed at least $220 billion in collective medical debt. Fourteen million owed over $1,000. Three million owed over $10,000. Americans cannot absorb billions in added drug price hikes as a result of ill-designed and poorly timed tariff increases. It will place undue economic burden on those who can least afford it by creating drug shortages and impacting access to critical therapies people need to lead long, healthy lives. Trump's policies will be shouldered most by the elderly, the disabled and the marginalized — communities that require access to reasonably-priced prescription drugs. It took decades for U.S. pharmaceutical production to move overseas; moving it back to America can't happen overnight. We need measured policy approaches, not knee-jerk ones, to prevent America's most vulnerable from digging themselves further in debt to pay for medications many already can't afford.
The Hill
22-07-2025
- Business
- The Hill
Social Security: Confidence in program's future dips 7 percent since 2020
Public confidence in the future of Social Security has dipped in the last five years, with younger Americans found to be more pessimistic about it, according to a new survey released by the American Association of Retired Persons (AARP). The survey found that of the 3,599 respondents polled, 36 percent were very or somewhat confident in the future of Social Security – a 7-point drop from 2020. Lower confidence levels were mainly driven by younger Americans, the survey found, as those in their 30s were found to be the most pessimistic. A closer look at party affiliation signaled shifts in confidence levels based on who was in the White House. This year, Republican respondents were found to be the most confident about the system's future, with a level of 44 percent, compared to 30 percent for those who identified as independent and 32 percent who identified as Democratic. By contrast, those who identified as Republicans during the Obama administration were least confident about Social Security's future, while confidence levels topped 50 percent for Democratic-identifying respondents at the time. More retired respondents now say they either rely on or plan to rely on Social Security in a substantial way for retirement income, rising from 51 percent in 2005 to 65 percent in 2025. In the same time frame, the percentage of those who say they don't rely on the program for retirement income has only slightly risen, hitting 13 percent this year, compared to 10 percent in 2005. The combined trust funds for Social Security are projected to run out in 2034, a year earlier than previously predicted, a board of trustees of the program's accounts said in a report released last month. The report said the depletion dates for the funds had advanced by 'about three calendar quarters' compared with the previous year's projections. The report cited last year's passage of the Social Security Fairness Act as a key factor behind the shift in the funds' projected depletion dates. The bipartisan bill repealed two tax rules that proponents say unfairly reduced benefits for many Americans who also receive government pensions. But many experts sounded the alarm over its expected price tag and raised questions of fairness around the legislation. In the latest survey, 74 percent of all respondents said they see Social Security as one of the most important government programs, up from 68 percent recorded in 2020. Older Americans were found to be more likely to believe it's unfair to make major changes to the program that would affect retirees or those close to retiring, with 95 percent of those ages 50 and older saying as much, compared to 85 percent of those between 18 and 49 years of age. The survey was conducted from June 18-23. The nonprofit organization said the data has been weighted by 'age, sex, census division, race/ethnicity, education attainment and AARP membership.' The survey also listed a confidence interval of the total sample of 2.04 percentage points at the 95 percent confidence level.
Miami Herald
17-06-2025
- Business
- Miami Herald
Jean Chatzky sends strong message on 401(k), Social Security
As many Americans are aware, planning for retirement inevitably involves assessing several critical financial checkpoints regarding one's age to ensure long-term financial stability and to uphold one's desired lifestyle. Daily living expenses - including essentials such as food, utilities, phones and transportation - shape U.S. workers' budgets and influence how much they can save and invest. Evaluating Social Security benefits and reliance on personal savings, such as 401(k) plans, is equally crucial. Key challenges also include managing rising health care costs, countering inflation's impact on fixed income, and ensuring that one's assets are set to last throughout retirement. Jean Chatzky, former NBC "Today Show" financial editor and current AARP (American Association of Retired Persons) understands these concerns - and steps in to help Americans make some sense out of ways to maximize monthly Social Security paychecks and employee-sponsored 401(k) plans. Don't miss the move: Subscribe to TheStreet's free daily newsletter Chatzky advises people to carefully consider when to claim Social Security, cautioning that early withdrawals lead to reduced monthly benefits. For those expecting a long retirement, she emphasizes the advantages of waiting until age 70 to maximize Social Security payments. In the case of couples, she recommends that the higher-earning spouse delay distributions if one partner anticipates a longer lifespan, ensuring greater financial security. She also points to the benefits of working while receiving Social Security, noting that some people do so out of financial necessity, while others value the engagement and sense of purpose employment provides in retirement. Related: Shark Tank's Kevin O'Leary warns Americans on 401(k)s In addition to Social Security, Chatzky warns about the risks and rewards associated with retirement savings accounts such as 401(k) plans. She stresses the fact that Americans face a significant possibility of exhausting their funds during retirement. To address this concern, she offers strategies designed to improve financial longevity and reduce the likelihood of running out of money. Because Social Security monthly paychecks alone are not enough to provide retired people with enough income on which to live, it is of vital importance that, during their working years, Americans put money away in retirement savings accounts. Employer-sponsored 401(k) plans are a great place to start, especially if one's company matches employee contributions - as those funds are essentially free money. More on retirement: Jean Chatzky shares major statement about Social SecurityShark Tank's Kevin O'Leary has blunt words on 401(k) plansDave Ramsey strongly cautions U.S. workers on Social Security Chatzky emphasizes the benefits of automated 401(k) contributions and of gradually increasing the percentage with each pay raise to accelerate retirement savings. She advises that those new to saving and facing financial constraints start with 3% of their income, while individuals in a better financial position begin at a higher rate. Chatzky suggests raising contributions by 2% annually until reaching the maximum limit. Her goal is for people to save 10% yearly if they begin before their mid-thirties, including employer matches, or 15% if they start later. Chatzky explains her view that simply enrolling in a workplace retirement plan reduces the likelihood of depleting funds in retirement to 20%. Related: Jean Chatzky sends strong message to Americans on Social Security Chatzky emphasizes the point that saving money consistently is the key to freeing up more of one's income to contribute to a 401(k) plan. "When I hear people suggest that you 'live on what you make,' I always shake my head," Chatzky wrote in "Money Rules," her book on personal finance tips. "If you're living on what you make, you're spending every dime. The key is to live on less than you make," she added. "This is non-negotiable. Why? Because if you do it consistently, you're automatically saving consistently." Chatzky advises Americans to be proud of their step-by-step achievements in planning financially for their future. "With the same enthusiasm you brought to watching your lima bean plant take root in grade school - watch that stash start to grow," Chatzky wrote. "Take pride in it. You're accomplishing something very few people can. And that will inspire you to set aside more." The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
11-06-2025
- Business
- Miami Herald
Jean Chatzky sends strong message to Americans on Social Security
Nearly all Americans understand that retirement signals the start of receiving Social Security benefits. Yet, many remain curious about the finer details of making their claims, which often vary based on individual circumstances. Jean Chatzky, once the financial editor on NBC's Today Show and now an AARP (American Association of Retired Persons) ambassador, offers practical guidance on managing Social Security and some important words for Americans regarding other income for retirement. Don't miss the move: Subscribe to TheStreet's free daily newsletter Based on data from the Social Security Administration, the typical monthly benefit is about $1,976, which totals roughly $23,712 a year. This amount falls short of providing the financial security that many retirees hope to attain. Long-term viability is even more alarming. Without new legislative measures, it's projected that Social Security's trust funds will be drained by 2033. In this scenario, the monthly benefits could fall to about 80% of what people currently expect. Related: Jean Chatzky warns Americans on Social Security, 401(k)s Because of these facts, employees have even more incentive to invest in their future by regularly funding 401(k) plans and IRAs (Individual Retirement Accounts), aiming to secure long-term financial stability. Employer-sponsored 401(k) plans serve as a dependable mechanism for accumulating retirement savings, especially when matching contributions boost the overall growth of their funds. Chatzky has a few more important words of advice to add about Social Security and retirement savings. Chatzky advises Americans that if they are single and confident in a long life, they should consider delaying Social Security benefits as long as possible - ideally until around age 70. For couples, she suggests that the partner with the higher income should postpone benefits, provided that at least one of the two is expected to have a long life. She also notes that many people continue working while receiving Social Security. For some, this is driven by financial necessity, while for others, the motivation is to stay engaged and enjoy the social aspects of work. More on retirement: Dave Ramsey sounds alarm for Americans on Social SecurityScott Galloway warns Americans on 401(k), US economy threatShark Tank's Kevin O'Leary has message on Social Security, 401(k)s Chatzky emphasizes the importance of finding strategies to increase savings, including in 401(k)s and IRAs, ensuring that the gap between current resources and future retirement needs is effectively bridged. She recommends planning with the assumption of living until at least 80 - a strategy that aligns with the consensus among experts in light of rising life expectancies. Although preparing for a retirement period of 15 to 20 years may introduce additional complexities, it is viewed as essential for securing long-term financial stability. Related: Dave Ramsey sends major message to Americans on IRAs, Roth IRAs In her book, "Money Rules," Chatzky explains a major factor that makes saving and investing for retirement difficult for many: debt. The more debt one has, the more difficult it is to sock money away for future retirement income; those interest payments on credit cards, for example, eat up a large chunk of one's paycheck. "If you look at the averages, chances are those people down the block (you know, the ones you envy) probably aren't doing as well as you think," Chatzky wrote. "In the US. alone an estimated 115 million people have credit card debt. Of them, the average household is carrying $15,799." The Consumer Financial Protection Bureau (CFPB) reports that a significant percentage of Americans are unable to cover an emergency expense of around $2,000 without taking on additional debt or selling assets. Chatzky offers more advice about debt and retirement savings that she refers to as a "bottom line." "Unless you've taken a look at the books, don't assume to know anyone's financial situation except your own," she wrote. "Make your lifestyle and purchasing decisions based on what you can afford, not what your peers are buying, and instead of coveting thy neighbor's car, try to feel smug about your fat retirement account, your zero credit card balances, and the car you own free and clear." Related: Shark Tank's Kevin O'Leary makes bold prediction on U.S. economy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
