Biden-Harris Administration Unveils Major Win on Lower Drug Prices!
The 2022 Inflation Reduction Act Allowed Medicare to Finally Begin Negotiating with Big Pharma for Lower Prescription Drug Prices
NEW YORK — Today, the Biden-Harris administration unveiled the results of the first-ever Medicare drug price negotiations, a development made possible by the 2022 Inflation Reduction Act, which marks its second anniversary tomorrow. These negotiations are part of the administration’s broader effort to address the crisis of healthcare affordability caused by price-gouging and corporate greed.
“Today’s announcement is an incredibly hopeful step for the future of American healthcare, and that’s not something you get to say every day,” said Maria Martinez, Executive Director of Empire State Voices. “For decades, Republicans in Congress have fought to prevent Medicare from negotiating lower drug prices, allowing Big Pharma executives to line their pockets by price-gouging the American taxpayer and straining Medicare to its breaking point. Finally, thanks to the hard work of the Biden-Harris administration, we’re beginning to see those costs come down, and the future is looking a bit brighter. Big Pharma CEOs might be furious, but I don’t think New York families will lose any sleep over that.”
The 10 drugs in question are used by more than 9 million Medicare recipients, costing the program over $50 billion a year, or about 20% of its annual spending on prescription drugs. In New York alone, more than 650,000 Medicare recipients take one of the medications involved in today’s announcement. Allowing Medicare to negotiate for lower drug prices helps ensure the program’s sustainability for future generations.
The Inflation Reduction Act also took steps to reduce the burden on American families by capping out-of-pocket spending for Medicare recipients, limiting Medicare insulin costs to $35 a month, and instituting penalties for pharmaceutical companies whose prices rise faster than inflation. New Yorkers are expected to save nearly $197 million a year from the out-of-pocket spending cap alone, and the Congressional Budget Office estimates these provisions will save taxpayers $237 billion over the next 10 years.
To learn more about Empire State Voices, contact press@empirestatevoices.org
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About Empire State Voices
Empire State Voices is a multi-year campaign dedicated to amplifying the voices of everyday working New Yorkers. We are fighting for economic policies that make life more affordable for constituents and holding Members of Congress across the state accountable when they fail to do the same.
