Americans pay a lot more for prescription drugs than people in any other developed nation, but the White House has now completed “negotiations” with ‘Big Pharma’ that will finally lower those prices for millions of seniors on Medicare.
The Inflation Reduction Act of 2022, which passed in the Senate after a tie-breaking vote by the vice president, will not only save $1.5 billion in out-of-pocket costs for seniors, it will also save the nation’s Medicare system $6 billion - in the first year alone.
The Department of Health and Human Services reached agreements with the pharmaceutical manufacturers of 10 different drugs which have surged in price since they went on the market. Some of the new prices, like two for diabetes, are being slashed by up to 79 percent.
Of the ten drugs, the most commonly prescribed is Eliquis, which is currently treating blood clots for nearly four million Americans on Medicare. The monthly price will plummet by 56 percent, an overall savings for the nation of many billions of dollars.
As detailed in the Inflation Reduction Act, more drugs will be selected each year - up to 15 drugs for negotiation in 2025, and up to 20 drugs every year after that.
In addition to these newly negotiated prices, people with Medicare are already experiencing lower drug costs thanks to the Inflation Reduction Act. And, next year, all Medicare Part D enrollees will benefit from a $2,000 out-of-pocket cap on their prescription drug costs, further making prescription drugs more affordable for seniors and people with disabilities.