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| Biden administration announces price cuts of 38%-79% on 10 key drugs that will save U.S. seniors $1.5 billion next year |
EDMONDS, WA – U.S. Senator Maria Cantwell (D-WA) celebrated the Biden Administration’s announcement of lower prices for the first 10 prescription drugs selected for negotiation with drug companies under provisions of the Inflation Reduction Act (IRA).
“Prescription drug costs continue to be one of the biggest expenses for American families. This historic law allowed the federal government and Medicare to go toe-to-toe with Big Pharma to negotiate the prices of prescription drugs for the first time,” said Sen. Cantwell.
“As a result, 10 common prescriptions that more than 144,000 Washington seniors rely on will be significantly more affordable, meaning $1.5 billion in savings for Americans on out-of-pocket costs, in addition to savings from other IRA prescription drug provisions, while saving taxpayers billions more.
"And we’re just getting started – the next round of drugs to be negotiated will be announced soon."
By giving Medicare the power to negotiate with drug companies on the prices they charge for prescription drugs, the IRA saves money for seniors, while saving money for taxpayers and reducing the federal budget deficit.
In 2026, once the new, lower prices take effect, Americans enrolled in Medicare Part D who take these medications are estimated to save $1.5 billion in out-of-pocket costs. Moreover, according to the Congressional Budget Office, the drug pricing provisions in the IRA will reduce the federal deficit by $237 billion over 10 years.
Data released by the Department of Health and Human Services shows in 2022 more than 144,000 Medicare enrollees in the State of Washington needed the 10 drugs announced for price negotiation.
Data released by the Department of Health and Human Services shows in 2022 more than 144,000 Medicare enrollees in the State of Washington needed the 10 drugs announced for price negotiation.
Together, those Washingtonians spent about $67.6 million out of pocket to access those important medications in 2022.
The 10 drugs included in this round of negotiations are among the most popular – and expensive – medications taken by people on Medicare. Prices for many of these drugs have soared in recent years, far exceeding the rate of inflation – doubling, tripling, or even more in some cases. For many of the patients taking these drugs, they will need them for the rest of their lives. The savings will only grow over time.
Prices will be negotiated for even more prescription drugs in the future, with the next 15 drugs to be selected for negotiation to be announced by February 2025.
Seniors in Washington state are also saving money on their health care in other ways thanks to money-saving improvements to Medicare in the IRA.
For example, in 2024, approximately 288,000 Washington state seniors are saving an average of $240 each year thanks to the IRA’s $2,000 cap on out-of-pocket drug costs and broader coverage of important vaccinations.
More details about cost savings associated with the IRA’s health care improvements are available HERE.
Sen. Cantwell is a leading voice for reducing prescription drug costs. In addition to her support for the drug negotiation provisions of the Inflation Reduction Act, Sen. Cantwell has pushed for passage of her bipartisan Pharmacy Benefit Manager Transparency Act.
Pharmacy Benefit Managers (PBMs) have the power to dictate how much people pay for their prescriptions, how they can access their prescriptions, and even what type of treatments people can receive. Just three PBMs control nearly 80% of the prescription drug market.
Sen. Cantwell’s legislation would increase drug pricing transparency and hold PBMs accountable for unfair and deceptive practices that drive up prescription drug costs at the expense of consumers.
The 10 drugs included in this round of negotiations are among the most popular – and expensive – medications taken by people on Medicare. Prices for many of these drugs have soared in recent years, far exceeding the rate of inflation – doubling, tripling, or even more in some cases. For many of the patients taking these drugs, they will need them for the rest of their lives. The savings will only grow over time.
Prices will be negotiated for even more prescription drugs in the future, with the next 15 drugs to be selected for negotiation to be announced by February 2025.
Seniors in Washington state are also saving money on their health care in other ways thanks to money-saving improvements to Medicare in the IRA.
For example, in 2024, approximately 288,000 Washington state seniors are saving an average of $240 each year thanks to the IRA’s $2,000 cap on out-of-pocket drug costs and broader coverage of important vaccinations.
More details about cost savings associated with the IRA’s health care improvements are available HERE.
Sen. Cantwell is a leading voice for reducing prescription drug costs. In addition to her support for the drug negotiation provisions of the Inflation Reduction Act, Sen. Cantwell has pushed for passage of her bipartisan Pharmacy Benefit Manager Transparency Act.
Pharmacy Benefit Managers (PBMs) have the power to dictate how much people pay for their prescriptions, how they can access their prescriptions, and even what type of treatments people can receive. Just three PBMs control nearly 80% of the prescription drug market.
Sen. Cantwell’s legislation would increase drug pricing transparency and hold PBMs accountable for unfair and deceptive practices that drive up prescription drug costs at the expense of consumers.
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