Biden-Harris Administration announces lower drug costs for patients taking ten of the most expensive medicines in Medicare thanks to the Inflation Reduction Act

Washington, D.C.- Statement from Margarida Jorge, Campaign Director of Lower Drug Prices Now, a coalition which led the fight to win historic reforms to lower drug prices in Congress in response to  the Biden-Harris Administration’s announcement about new negotiated prices in Medicare: 

“After decades of prescription drug corporations price-gouging patients on some of the most commonly prescribed medicines in Medicare, today’s news about lowered prices through Medicare negotiations is a milestone for patients, providers and taxpayers alike. These first ten drugs chosen earlier this year for negotiated prices are among those with highest total spending in Medicare Part D and the highest out of pocket costs for patients. Thanks to Medicare negotiations being implemented under the 2022 Inflation Reduction Act, patients in the future will save between 38 and 79 percent on these medicines. When the negotiated prices go into effect in 2026, people enrolled in Medicare Part D are estimated to save $1.5 billion in out-of-pocket costs.  If the negotiated prices had been in effect during 2023, Medicare would have saved an estimated $6 billion.

Nearly 9 million patients will save between 38% and 79% on 10 of the most widely used and expensive prescriptions in Medicare including drugs like Xarelto, Eliquis and Stelara starting in 2026. For some medicines, patients will save literally thousands of dollars out of pocket thanks to Medicare negotiations.

Before Democrats in Congress passed the Inflation Reduction Act in 2022, Medicare was prohibited from negotiating lower prices on any medicines. The new law which will be two years old this week and which is currently being implemented, enables Medicare to negotiate for prices for the first time and will gradually increase the number of prescription drugs subject to negotiated prices over the coming years. After just six months of negotiations, it’s clear negotiating prices works: drug corporations no longer have monopoly power to charge whatever price they want and to raise their prices anytime. 

Now, it’s time to continue forging forward with implementation of the law and with more reforms that will extend these lower negotiated prices to cover even more people, including people who have private insurance and don’t yet qualify for Medicare. People of all ages deserve affordable medicines to take care of their health and their families.”