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Biden administration announces plan to negotiate lower prescription drug prices
President Biden says his administration will soon negotiate prices of widely used prescription drugs to help reduce costs for millions of Americans. They say the negotiations will also save taxpayers billions of dollars.
SAN JOSE, Calif. - President Biden says his administration will soon negotiate prices of widely used prescription drugs to help reduce costs for millions of Americans. They say the negotiations will also save taxpayers billions of dollars.
It will take a few years before people start to see price reductions, but the Biden Administration says making these lifesaving drugs more affordable will be worth the wait.
"Statistics show that people don’t get their medications because they can’t afford the out-of-pocket help," said Desi Kotis, Chief Pharmacy Executive for UCSF Health.
On Tuesday, President Joe Biden announced his administration will begin negotiating prescription drug prices with pharmaceutical companies under the Inflation Reduction Act. Ten of the most widely used drugs, including Eliquis, Jardiance and Xarelto, will be targeted for price reduction within the Medicare program.
"Most users are seniors. Those over 65. So, this is a very good thing along with the cap for Medicare, the $2,000 cap," Kotis said.
The $2,000 cap is the most anyone using Medicare will pay out of pocket. The drugs listed for price cuts include drugs that treat diabetes, blood clots, psoriasis and blood cancers. In 2021 the Commonwealth Fund reported about 9% of Medicare beneficiaries aged 65 and older said they did not fill a prescription or skipped a drug dose due to cost.
The Center for Elders’ Independence in Oakland says they have a special program that provides medication to seniors free of charge.
"But we have to pay for the medicines, and we have to live within a budget. So, it’s very important for everybody who wants quality healthcare, to have our medications at a reasonable price," said Dr. James Mittelberger, Center for Elders’ Independence.
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Last year, patients on Medicare paid $3.4 billion of out-of-pocket costs for drugs. Medicare, also paid more than $50 billion for prescription drugs from June 2022 until May 31 of this year. Dr. Mittelberger says negotiating fair prices for prescription drugs will help millions of Americans, but there will be some resistance from drug companies.
"If you had a company, and you were able to sell your stuff at whatever price you wanted, and the government couldn’t negotiate, you would not like it if there was going to be a negotiation. But for the people of the United States, for the taxpayers, and for all those people that need those medicines for Medicare and Medicaid, this is a positive step," Mittelberger said.
Drug companies that refuse to be a part of the new negotiation process will be heavily taxed under the new plan. Multiple drug companies have already filed lawsuits over the Biden Administrations plan.