PROVIDENCE, RI -- U.S. Senator Jack Reed today welcomed the historic announcement by the Biden-Harris administration of lower drug prices for ten of the most expensive prescription drugs in Medicare, which were subject to negotiations between the federal government and drugmakers.

Senator Reed helped pass the landmark Inflation Reduction Act of 2022 (P.L. 117-169), granting the U.S. Centers for Medicare and Medicaid Services (CMS) the authority to use the purchasing power of Medicare to negotiate lower prices for consumers.   Now, U.S. taxpayers are set to save an estimated $6 billion in the first year from new, lower prices the Biden-Harris Administration has negotiated down by as much as 79 percent on ten top-selling prescription drugs for the Medicare health program for older Americans.

Reed noted that Republicans unanimously opposed the law and Vice President Kamala Harris cast the deciding vote to use negotiating power to help lower the cost of prescription drugs.

“This historic step is great news for all Americans.  It will soon mean lower prices at the pharmacy counter, easing the financial burden on millions of seniors who struggle to pay for needed medications.  It's also a win for taxpayers and will achieve real cost savings,” said Senator Reed.  “This is just the start.  Under the Inflation Reduction Act, Medicare can negotiate lower prices of more prescription drugs each year.  I will continue working to lower prescription drug prices and improve health care coverage, access, and affordability.  Lowering these unnecessarily high drug prices means more Americans can afford to manage their health and it will improve the health of our communities.”

Last year, Medicare selected ten of the highest-cost drugs for negotiations: Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara and NovoLog.  Together, these 10 prescription drugs accounted for $50.5 billion, or 20 percent, of Medicare Part D spending from June 1, 2022, to May 31, 2023 according to CMS.

Next, 15 drugs will be selected for negotiations. In addition to Medicare negotiation, the Inflation Reduction Act created several steps to lower prescription drug costs for seniors and taxpayers, including:

•           $2,000 out-of-pocket cap on prescription drug costs in Medicare Part D, beginning January 2025.

•           $35 monthly cap on insulin co-pays in Medicare.

•           A price-gouging penalty that saves money for seniors and taxpayers when drug companies raise prices faster than the rate of inflation.

•           No-cost vaccines for seniors enrolled in Medicare.

The new lower prices will go into effect for people with Medicare Part D prescription drug coverage beginning January 1, 2026.

For more information on Medicare negotiations, visit: https://www.hhs.gov/about/news/2024/08/15/historic-first-biden-harris-administration-successfully-negotiates-medicare-drug-prices-delivers-promise-lower-prescription-drug-costs-american-seniors.html